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Financial Planning / Tax Strategies


Subject:  Re: Vehicle Sale Date:  6/24/2001  5:33 PM
Author:  gailkay Number:  52044 of 127642

What are the tax rules for selling a vehicle for a profit? I seem to recall that you could sell 5 vehicles a year and not be considered a dealer. I also thought that these "occasional vehicle sales" were not considered taxable income even if sold for a profit.

I think your reference to "dealer" relates to sales tax which is a state or county issue - and varies depending on your state whether you would be required to charge and remit sales tax on your transactions.

For federal income tax I am unaware of any exclusion from taxable income for the sale of autos, occassional or otherwise.
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