topic Lemon law Rv buyback settlement taxes in Retirement tax questions

Lemon law Rv buyback settlement taxes

Burgett450 — Wed, 11 Feb 2026 04:03:57 GMT

So my question is what am I going to be taxed on or what do I put on my taxes? The manufacture is buying back the unit from us. It’s a lemon.

Cash price was $42,450

$46,227 with taxes and fees. California

…… ok so

our settlement is $53,788

The are paying off our loan, $31,262

The rest of it ($22,525.54.)

(Which is the down payment ($11227.54 )and monthly payments we made to the bank ($11,298).

I’m just wondering what we will be taxed on 1099? We are settling for what we put into the RV.

Re: Lemon law Rv buyback settlement taxes

Vanessa A — Thu, 08 Feb 2024 20:27:40 GMT

Your taxable amount would be your gain on the buyback. So $53,788 would be your sales price. Your purchase price would be $46,227. The difference would be the amount subject to capital gains taxes as this would be basically a sale of your RV since they are buying it back.

Re: Lemon law Rv buyback settlement taxes

Opus 17 — Thu, 08 Feb 2024 20:42:12 GMT

Don't enter this as a 1099-MISC. Enter it as an investment sale. Choose "other" for the type of property, and enter the details as if you sold the car to the settlement company or dealership. Treating it as an investment (capital gains) will give you a lower tax rate as long as you owned the car for more than a year.