topic Buy cars as investment for sale in Deductions & credits

Buy cars as investment for sale

stech — Mon, 09 Mar 2026 05:45:46 GMT

I am a partner at a dealership. I don't own it. But I have provide capital to buy & my friend who has license to sell cars, sell them. Apparently I had a loss last year. How I report my losses on my return. I didn't open an LLC. Just used me personal bank account to write checks

Re: Buy cars as investment for sale

Mike9241 — Fri, 18 Feb 2022 04:12:42 GMT

if you are a partner in a dealership - either as a partner or S-Corp shareholder, you should be getting a K-1 from the entity. if you do not understand this, you should consult with a tax pro who can review your situation. until you know exactly what you have, proper guidance for tax filing is impossible.

Re: Buy cars as investment for sale

stech — Fri, 18 Feb 2022 04:21:19 GMT

I understand what K-1, 1120 etc is. That dealership is not a S-Corp or Inc. Its an LLC. Legally I may not be a partner. As I used my personal funds.

Can I list those cars I bought, its cost and cash proceeds on my return? I do have bill of sale for all transactions

Can I get 1099-MISC as loss instead of income?

Re: Buy cars as investment for sale

stech — Fri, 18 Feb 2022 04:56:22 GMT

maybe this articles help answer my question?

https://www.cargurus.com/Cars/articles/how_do_taxes_work_on_private_car_sales#:~:text=Selling%20a%20vehicle%20for%20a,reported%20on%20your%20tax%20return.&text=But%20if%20the%20original%20sales,tax%20on%20your%20%242%2C000%20profit.