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ypsiannie
New Member

Do I have to pay tax on income from the sale of a car or airplane?

 
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5 Replies
LinaJ2018
Intuit Alumni

Do I have to pay tax on income from the sale of a car or airplane?

Yes, you do.  When you sold an item you own for personal use, you pay taxes if your selling price is greater than the cost basis hence capital gain.

[Edited 1/29/2019 2:20PM]

ypsiannie
New Member

Do I have to pay tax on income from the sale of a car or airplane?

I think the correct answer (based on another TurboTax post) is that I only have to report income from sale of a car if the selling price was more than the price I originally paid for the car.  In other words, I only pay tax if it is a capital gain.   
LinaJ2018
Intuit Alumni

Do I have to pay tax on income from the sale of a car or airplane?

Yes. Thank You.

Do I have to pay tax on income from the sale of a car or airplane?

How is the cost basis for a personal airplane sale determined?  Would it be the original purchase price (over thirty years ago) plus many mandatory and optional upgrades?  The selling price was several times more than the purchase price.

JotikaT2
Employee Tax Expert

Do I have to pay tax on income from the sale of a car or airplane?

Yes, your cost basis would be the original cost basis plus any upgrades you have made over the years.

 

Definition of cost basis

 

Capital gain or loss

 

 

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