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mvarzi
New Member

I bought car $27,981.08 in 2020. I sold this car for $33,400.00 in 2023. I paid $2938.00 To DMV for transfer fee. How can I apply for tax now?

 
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2 Replies
DawnC
Expert Alumni

I bought car $27,981.08 in 2020. I sold this car for $33,400.00 in 2023. I paid $2938.00 To DMV for transfer fee. How can I apply for tax now?

Can you clarify what you are trying to do?   You have a reportable gain on the sale of the car.   The Internal Revenue Service (IRS) permits you to write off either your state and local income tax or sales taxes when itemizing your deductions.   See below to learn what you can deduct, and the links will tell you where to enter the deductions.  

 

  • Where to enter Car Registration Fees - Your car registration fee is deductible if it’s a yearly fee based on the value of your vehicle, and you itemize your deductions.   You can’t deduct the total amount you paid, only the portion of the fee that’s based on your vehicle’s value.   In addition, not all states have value-based registration fees.  Refer to this linked list for information related to your state-specific situation.
  • Where to enter Sales Taxes - You can enter sales taxes for major purchases at the end of the sales tax interview.  
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I bought car $27,981.08 in 2020. I sold this car for $33,400.00 in 2023. I paid $2938.00 To DMV for transfer fee. How can I apply for tax now?

ever deduct expenses for this vehicle on a business or your personal return?

if not, then go the capital asset sale section under wages and income 

check to update or enter stock sale (I know it isn't)

 

type is f  - neither proceeds nor cost report to IRS 

enter data for sale

proceeds enter the 33400

for cost it's 27981 (including any sales tax) +2938 - sales tax if you took a deduction for it on schedule A  in the year purchased. 

 

 

 

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