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Selling a personal asset as a car does not need to be reported on your return unless you made a profit on it. A personal vehicle usually does not go up in value so this is rare to make money on it. A loss on a personal sale such as a car is not deductible.
Found money is taxable income.
Under Federal tax law, specifically IRS code section 61, it states, “Gross income means all income from whatever source derived.”
So your unexpected cash is taxable income and must be reported on your income tax return in the year in which it was found.
To report the Car (if profit made).
To enter your Car Sale (if sales price exceeds cost of car).
To enter your Found Money
Selling a personal asset as a car does not need to be reported on your return unless you made a profit on it. A personal vehicle usually does not go up in value so this is rare to make money on it. A loss on a personal sale such as a car is not deductible.
Found money is taxable income.
Under Federal tax law, specifically IRS code section 61, it states, “Gross income means all income from whatever source derived.”
So your unexpected cash is taxable income and must be reported on your income tax return in the year in which it was found.
To report the Car (if profit made).
To enter your Car Sale (if sales price exceeds cost of car).
To enter your Found Money
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