What is the name of your state? Indiana
Let my brother basically have my truck. I was still making payments on it though and over the period of about 2 years, he had made many customizations to it. He got into financial trouble and asked me to sell the truck so he could get his money "out of the truck" that he had put in by way of all the customizations. I ended up selling it, and after the bank took what I owed, there was an $18000 difference. They desposited it into my account, I withdrew it (cash at once) and gave it to my brother, as it was his for the customizations he had made.
Now then, its almost tax time, am I going to have to pay taxes on that 18000?? I wasn't planning on reporting it since I didn't keep it, or spend it. Someone said banks automatically reports large withdraws to the IRS. I don't want to get into trouble, but also don't want to pay taxes on money that I didn't keep or spend. Help...am I in for it?
Let my brother basically have my truck. I was still making payments on it though and over the period of about 2 years, he had made many customizations to it. He got into financial trouble and asked me to sell the truck so he could get his money "out of the truck" that he had put in by way of all the customizations. I ended up selling it, and after the bank took what I owed, there was an $18000 difference. They desposited it into my account, I withdrew it (cash at once) and gave it to my brother, as it was his for the customizations he had made.
Now then, its almost tax time, am I going to have to pay taxes on that 18000?? I wasn't planning on reporting it since I didn't keep it, or spend it. Someone said banks automatically reports large withdraws to the IRS. I don't want to get into trouble, but also don't want to pay taxes on money that I didn't keep or spend. Help...am I in for it?