I am paying off my car completely to obtain the title and doing a private sell. When it comes to to filing my taxes will I pay captain gains on the total purchase price I am selling it for? I just wanted to anticipate what I need to set aside. Just for example: My car I owe 14,000.00 the buyers are giving me 17,000.00 what would I be taxed on during this process. This is all new to me any help is greatly appreciated!!
Thank you!
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Ok ... if this is a personal car never used for business then you will only pay taxes on the sale IF you got more for the car then you paid for it originally ( the loan payoff amount is immaterial).
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