Capital gains on sale of car

[Cruz]

I purchased a vehicle several months ago and recently sold it to purchase a new one. Can anyone in the tax industry explain what the tax implications will be? Do I need to claim the profits of the sale when I file my return?

I remember hearing a while back that capital gains applies to vehicles in a similar fashion as real estate (regardless of income, there is a flat rate of capital gains to be paid on the sale). Can anyone verify this?

Thanks

[rc2002]

Nice work. It's pretty rare to make money on a car.

Technically you do need to declare it as capital gains, and you'd pay the same rate as any other investment that you'd pay capital gains on.

If you didn't declare it, I highly doubt it would come up even if you were audited.

[Cruz]

Thanks for the reply. I tried to research it on the internet but couldn't find any resources specific to capital gains on vehicle sales. Is there a site you're aware of by chance?

[rage2]

There are no capital gains tax on a vehicle if you sell 2 or less vehicles during a taxation year. Sell 3 or more, you're considered a curber and subject to any income tax.

[Cruz]

Thx rage. So I don't need to declare it at all? Won't come up in an audit?

[Nufy]

Is the car listed as a company asset ??

If so it will be noticed when it is not on the books at year end.....

[googe]

hm, does that mean you can declare vehicles as a capital loss too? thatd be handy :rofl:

[Cruz]

Originally posted by Nufy
Is the car listed as a company asset ??

If so it will be noticed when it is not on the books at year end.....

No - Personal use.

[Nufy]

Originally posted by googe
hm, does that mean you can declare vehicles as a capital loss too? thatd be handy :rofl:

I believe you can write off depreciation on a vehicle used for company / work purposes.

[2000impreza]

Originally posted by Nufy


I believe you can write off depreciation on a vehicle used for company / work purposes.

You can write off CCA for tax purpose if that is what you mean...