- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Deductions & credits
It depends.
This personal property sale is considered the sale of a capital asset. You will need to determine the basis in the car in order to determine if you has a capital gain (reportable) or a capital loss (not reportable). So if your cost for the car plus the cost of any improvements is more than you sold it for, then you have a personal capital loss and that is not reportable or deductible on your tax return.
If your total costs are less than what you sold it for, you would have a personal capital gain and you would need to report it on your tax return in the year of sale
To enter this transaction in TurboTax, log into your tax return (for TurboTax Online sign-in, click Here and click on "Take me to my return")and type "investment income (gains and losses)" in the search bar then select "jump to investment income (gains and losses)". TurboTax will guide you in entering this information (see step 6 below)
Alternatively, To enter this transaction in TurboTax Online or Desktop, please follow these steps:
- Once you are in your tax return, click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)
- Next click on “Wages & Income” ("Personal Income" in TurboTax Home & Business)
- Next click on “I’ll choose what I work on”
- Scroll down the screen until to come to the section “Investment Income”
- Choose “Stocks, Mutual Funds, Bonds, Other” and select “start’ (or “update” is you have already worked on this section)
- The first screen will ask if you sold any investments during the current tax year (This includes any sale of personal property held as an investment property so answer “yes” to this question)
- Since you did not receive a 1099-B, answer “no” to the 1099-B question
- Choose the type of investment you sold - Personal Items
- Some basic information:
- Description – type of vehicle
- Net Proceeds – Total amount received for the property less eligible selling expenses (if any)
- Date of Sale – Date you sold the vehicle
- Tell us how you acquired the property
- Any Business or Rental Use - If the vehicle was used for personal use only, you will not be able to deduct the capital loss since no capital loss is allowed for a personal use capital asset.
- Enter Cost Information:
- Date Acquired – Date you purchased the vehicle
- Original Cost – Cost of vehicle plus any capital improvements
Click these links for further information about reporting the sale of a capital asset or Capital Gains and Losses