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Level 2
posted Oct 27, 2021 11:07:56 AM

auto capital gains on sale of vehicle

I have been taking actual expenses each of last 4 years on my auto using Turbo Tax. When I sell my car, after entering the sale price I get, will Turbo Tax automatically calculate if I owe any capital gains on that sale or not?

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1 Replies
Employee Tax Expert
Oct 27, 2021 11:17:08 AM

Hi dick16

 

When you sell a car for more than it is worth, you do have to pay taxes. Selling a car for more than you have invested in it is considered a capital gain. Thus, you have to pay capital gains tax on this transaction. TurboTax will calculate the gain for you.