https://ttlc.intuit.com/community/tax-credits-deductions/discussion/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/01/2818502#M269618 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.&nbsp;<BR /><BR />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).&nbsp;<BR /><BR />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 Mon, 23 Feb 2026 10:48:29 GMT coreyeacretpba 2026-02-23T10:48:29Z https://ttlc.intuit.com/community/tax-credits-deductions/discussion/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/01/2818502#M269618 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.&nbsp;<BR /><BR />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).&nbsp;<BR /><BR />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 Mon, 23 Feb 2026 10:48:29 GMT https://ttlc.intuit.com/community/tax-credits-deductions/discussion/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/01/2818502#M269618 coreyeacretpba 2026-02-23T10:48:29Z https://ttlc.intuit.com/community/tax-credits-deductions/discussion/re-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/01/2818511#M269619 <P>it you have a gain it's a sale of personal property taxable as a capital gain. the gain is measured by the difference between your purchase price and what you sold it for. financing has nothing to do with computing the gain. buying a new vehicle with the proceeds does not affect the computation of the gain.&nbsp;</P> <P>$18,400 sales price less $14,000 is $4,400</P> Mon, 16 Jan 2023 20:02:25 GMT https://ttlc.intuit.com/community/tax-credits-deductions/discussion/re-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/01/2818511#M269619 Mike9241 2023-01-16T20:02:25Z https://ttlc.intuit.com/community/tax-credits-deductions/discussion/re-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/01/2818515#M269621 <P>Ok, wanted to double check as I've only ever done just normal simple returns, this is the first year I've had to do more (car sale and gambling winnings), so its a whole new ballgame for me and I have no idea what counts or doesn't. Thank you so much for the quick reply!</P> Mon, 16 Jan 2023 20:05:21 GMT https://ttlc.intuit.com/community/tax-credits-deductions/discussion/re-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/01/2818515#M269621 coreyeacretpba 2023-01-16T20:05:21Z