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If I bought a car with a loan for $14,000, then sold it for $18,400, and $11,000 of that went to pay off the loan, do I still file capital gains? And for what amount?
I bought a 2018 Nissan Sentra back in 2019, then sold it last year for more than I paid for it. The difference exactly was $3,481.50 between the amount financed and the amount for the sale. I received $7,397.06 from the sale, with the rest going to payoff the loan of $11,002.94 still owed.
I did then use the rest of the money, plus some of my own added in, as a down payment on another car a few months later (had to wait due to inventory issues during 2022, hence the sale while price was high, then wait to get the car I wanted).
So the question is does the loan impact the whole capital gains thing? Do I need to calculate it based on how much of the loan I paid versus how much I got back? Or just off the sale of the car? I am so confused as to what to do xD
I did then use the rest of the money, plus some of my own added in, as a down payment on another car a few months later (had to wait due to inventory issues during 2022, hence the sale while price was high, then wait to get the car I wanted).
So the question is does the loan impact the whole capital gains thing? Do I need to calculate it based on how much of the loan I paid versus how much I got back? Or just off the sale of the car? I am so confused as to what to do xD
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‎January 16, 2023
11:56 AM