Leased a car, purchased the car at the end of lease, and a year later sold it.

[char51181]

Hi,

I leased my 2019 chevy (msrp of $45k) for approximately $480/month and bought it out-right in 2022, as the lease ended. I sold it for $3k more than the end of lease buy out price.

During the lease term I spent $1k in repairs and after the buy out I spent $2k in repairs.

I did not use it for business.

How do I handle for tax purposes?

[DaveF1006]

You don't. These vehicle expenses are only available if the car was used for business. 

[char51181]

Thank you, and how do I handle the sale for tax purposes. Again this is for personal use. 

Please advise where to enter as well. 

[DaveF1006]

To report, you will need to go to:

1. Go to federal
2. Wages and income
3. Investment Income”
4. Choose “Stocks, Mutual Funds, Bonds, Other” and select “start’  Select other.
5. The first screen will ask if you sold any investments during the current tax year (This includes any sale of real property held as an investment property so answer “yes” to this question)
6. Since you did not receive a 1099-B, answer “no” to the 1099-B question
7. Choose type of investment you sold - select everything else
8. What type of investment other
9. How did you receive the investment. Indicate you purchased it. 
10. On what did did you receive this investment.  The date of purchase of the vehicle.
11. Some basic information:
    1. Description –  Usually Once he address of the property sold
    2. Sales Proceeds –  The amount you received for the sale
    3. Date Sold – Date you sold the property
    4. Cost or other basis  (This is the price of purchase.) 

Reach out to us if you have additional questions.