Car sale and purchase

[mcnally9205]

I have a vehicle that if I sell it, it will be more than what I paid for it.  If I sell it, and buy a new car within a certain time frame, do I still have to pay capital gain taxes?   If I were to trade the vehicle in towards a new one would I?  I don't believe so but I'm trying to see what my options are to avoid capital gains.

Thank you,
mcnally9250

[Anonymous_ · Accepted solution]

Like kind (Section 1031) exchanges were eliminated, except for real property, by tax reform (the TCJA).

As a result, the gain on the sale will have to be reported and recognized.

[fanfare]

most people don't put their cars on the tax return.

@mcnally9205 

[Anonymous_ · Accepted solution]

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@fanfare wrote:

most people don't put their cars on the tax return.

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Probably because most people do not sell personal-use cars for more than they paid for them. If they do, however, they need to report the (capital) gain on the transaction.