topic Car sale and purchase in Get your taxes done using TurboTax

Car sale and purchase

mcnally9205 — Tue, 10 Mar 2026 07:29:50 GMT

I have a vehicle that if I sell it, it will be more than what I paid for it. If I sell it, and buy a new car within a certain time frame, do I still have to pay capital gain taxes? If I were to trade the vehicle in towards a new one would I? I don't believe so but I'm trying to see what my options are to avoid capital gains.

Thank you,
mcnally9250

Re: Car sale and purchase

Anonymous_ — Fri, 02 Dec 2022 00:44:29 GMT

Like kind (Section 1031) exchanges were eliminated, except for real property, by tax reform (the TCJA).

As a result, the gain on the sale will have to be reported and recognized.

Re: Car sale and purchase

fanfare — Fri, 02 Dec 2022 04:14:37 GMT

most people don't put their cars on the tax return.

@mcnally9205

Re: Car sale and purchase

Anonymous_ — Fri, 02 Dec 2022 14:23:11 GMT

@fanfare wrote:

most people don't put their cars on the tax return.

Probably because most people do not sell personal-use cars for more than they paid for them. If they do, however, they need to report the (capital) gain on the transaction.