Declaring The Sale on a Car

[splitsemitic]

I am selling a car for $7,000. The buyer wants to put $1 when we transfer the title. I will still declare $7,000 on my income tax. Is there any way I can get in trouble?

 

[Zigner]

I am selling a car for $7,000. The buyer wants to put $1 when we transfer the title. I will still declare $7,000 on my income tax. Is there any way I can get in trouble?

In the US - yep.

 

[OHRoadwarrior]

I would assume you are aiding in the commission of sales tax fraud, at minimum. You would also be considered to have committed income tax fraud by factoring disposal of an asset at a different price than stated on the receipt.

 

[davew128]

I would assume you are aiding in the commission of sales tax fraud, at minimum. You would also be considered to have committed income tax fraud by factoring disposal of an asset at a different price than stated on the receipt.

Give. Me. A. Break.

OP is most certainly NOT committing income tax fraud by reporting the sale of the vehicle FOR THE AMOUNT IT WAS ACTUALLY SOLD FOR. What is on the receipt is NOT determinative of the sales price for income tax purposes.

For someone who claims to be a tax professional you sure give an awful lot of wholly incorrect responses.

 

[OHRoadwarrior]

Give. Me. A. Break.

OP is most certainly NOT committing income tax fraud by reporting the sale of the vehicle FOR THE AMOUNT IT WAS ACTUALLY SOLD FOR. What is on the receipt is NOT determinative of the sales price for income tax purposes.

For someone who claims to be a tax professional you sure give an awful lot of wholly incorrect responses.

Yes Mr. IRSagent, that is what I claimed.

Yes Mr. IRSagent, I realize the receipt/title says I sold it for $6,999 less than I claimed, however, you can trust me to be honest and accept that number.

 

[anteater]

Is the car a personal use asset? Is there a gain on the sale of the car?

 

[tranquility]

If I were asked to prove what I sold the car for, I might supply a copy of the check I got along with a bill of sale rather than a false item I signed.

 

[OHRoadwarrior]

Is the car a personal use asset? Is there a gain on the sale of the car?

I gather, it is disposal of a business asset, that has been depreciated.

 

[anteater]

I gather, it is disposal of a business asset, that has been depreciated.

Wow. You got that from:

I am selling a car for $7,000. The buyer wants to put $1 when we transfer the title. I will still declare $7,000 on my income tax.

 

[OHRoadwarrior]

Wow. You got that from:

Aside from a car being a business asset, can you think of a time the sale price would be relevant to income tax? I could not, off the top of my head.

 

[anteater]

Aside from a car being a business asset, can you think of a time the sale price would be relevant to income tax? I could not, off the top of my head.

Yes. If I sold it for more than I paid for it. Not likely for a personal use asset, but possible.

However, my thoughts were running more toward a lack of knowledge on the part of the OP.

 

[justalayman]

Aside from a car being a business asset, can you think of a time the sale price would be relevant to income tax? I could not, off the top of my head.

any time the seller makes a profit the selling price would be relevant. If I, as an individual, bought a car for $1 and sold it for $7k, yes, the selling price would be relevant because I would have to pay taxes on the $6999 as income.

 

[davew128]

Aside from a car being a business asset, can you think of a time the sale price would be relevant to income tax? I could not, off the top of my head.

Collectible antique vehicle.

Any questions?

 

[davew128]

Yes Mr. IRSagent, that is what I claimed.

Yes Mr. IRSagent, I realize the receipt/title says I sold it for $6,999 less than I claimed, however, you can trust me to be honest and accept that number.

And the fraud in claiming the actual number of $7,000 for INCOME TAX PURPOSES is......what?

Stating the $1 figure as proceeds would be the fraud.

 

[OHRoadwarrior]

And the fraud in claiming the actual number of $7,000 for INCOME TAX PURPOSES is......what?

Stating the $1 figure as proceeds would be the fraud.

I Hope you don't do taxes for a living.