Capital gain from selling a car

Forum|Forum|2 years ago
February 26, 2024
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I purchased a car two years ago and sold it in 2023, generating a $1000 profit. Should I use Schedule C or Schedule D to report this capital gain?

Best answer by DavidD66

If it was a personal vehicle, the transaction would be reported on Form 8949 and that would "flow" to Schedule D. You will report that in the same section in which you report stock and other investment sales. To enter:

Type "Investment sales" in the search window and click Enter
Click on "Jump to Investment sales"
On the page with "Did you sell any investments in 2023?" Answer Yes
Answer No to "Did you get a 1099-B..."
Enter the name of the person or entity that brokered the sale (you can leave this blank)
On the "Now we'll walk you through entering your sale details" Indicate "Vehicle"
The interview will walk you through entering the details of the sale

If it was a business vehicle, it would be reported as an asset disposition and reported on Form 4797.

DavidD66Answer

Type "Investment sales" in the search window and click Enter
Click on "Jump to Investment sales"
On the page with "Did you sell any investments in 2023?" Answer Yes
Answer No to "Did you get a 1099-B..."
Enter the name of the person or entity that brokered the sale (you can leave this blank)
On the "Now we'll walk you through entering your sale details" Indicate "Vehicle"
The interview will walk you through entering the details of the sale