It depends - If you sold it at a loss, the IRS does not allow the recognition of capital loss on personal use items.
If you have a capital gain, then report it as the sale of a capital asset -
To enter the sale of
a capital asset in TurboTax, log into your tax return (for TurboTax Online
sign-in, click Here and click on
"Take me to my return") type "investment
sales" in the search bar then select "jump to investment sales". TurboTax will guide you in
entering this information.
- Choose “Stocks, Mutual Funds,
Bonds, Other” and select “start’ (or “update” is you have already worked
on this section)
- The first screen will ask if
you sold any investments during the current tax year (This includes any
sale of personal property held as an investment property so answer “yes”
to this question)
- Since you did not receive a
1099-B, answer “no” to the 1099-B question
- Choose the type of investment
you sold - Personal Items
- Some basic information:
- Description – type of
vehicle
- Net Proceeds – Total amount received for
the property less eligible selling expenses (if any)
- Date of Sale – Date you sold the vehicle
- Tell us how you acquired the
property
- Any Business or Rental Use -
If the vehicle was used for personal use only, you will not be able
to deduct the capital loss since no capital loss is allowed for a personal
use capital asset.
- Enter Cost Information:
- Date Acquired – Date you purchased the vehicle
- Original Cost – Cost of vehicle
plus any capital improvements
