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Level 2
posted Nov 22, 2023 7:26:46 AM

Purchasing and reselling a leased auto

I intend to purchase my leased auto at the end of the lease and then resell it to my son for the same price as the end of lease buyout.  How is that handled on my return, and what are the tax implications to each of us?

0 2 476
2 Replies
Level 15
Nov 22, 2023 7:35:17 AM

Since you will be selling the vehicle to your son for the same price that you paid for the vehicle, there are no tax implications for either you or your son.

Personal property sold for the same price or lower than the purchase price is not reported on a tax return.

Level 15
Nov 22, 2023 11:41:45 AM

I agree with Don that it would not affect income tax.  However, it is quite possible that both sales (your purchase, then your son's purchase) could be subject to Sales Tax in your State.