TomD8
Level 15

Deductions & credits

First, you have to determine the fair market value of the car at the time it was gifted to you.  If you subsequently sold it at a profit over that amount, you'd owe capital gains tax on the amount of the profit.

If you sold it at a loss, there's nothing for you to report on your tax return.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

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