Hi everyone,
I was gifted a car 6 months ago from a family member. We live in Texas.
The title has been transferred over to my name and I am trading the vehicle for another that is more appropriate for my new baby.
Selling vehicle for: $24,500
Vehicle I’m trading for costs: $15,000
Getting a check for difference: $9,176.99 (after fees etc)
I just found a receipt that my family member originally paid only $21,399 for the gifted vehicle so I am selling it for more. He bought it from a friend’s dealership and received a deal/discount.
I’ve barely put any miles on the vehicle and KBB normal trade value is around 24,000-26,000 right now for this type of car. So it seems like what I’m selling it for is fair and appropriate for the current market.
I would like an expert opinion- do I owe taxes on this transaction? I am selling for more than my family member originally paid BUT it is a fair trade price and he had bought it at a very low price from his friend.
Also- I am not employed and haven’t filed income taxes in a few years due to pregnancy and caring for baby so I don’t usually deal with taxes as of lately.
What should I do?
I was gifted a car 6 months ago from a family member. We live in Texas.
The title has been transferred over to my name and I am trading the vehicle for another that is more appropriate for my new baby.
Selling vehicle for: $24,500
Vehicle I’m trading for costs: $15,000
Getting a check for difference: $9,176.99 (after fees etc)
I just found a receipt that my family member originally paid only $21,399 for the gifted vehicle so I am selling it for more. He bought it from a friend’s dealership and received a deal/discount.
I’ve barely put any miles on the vehicle and KBB normal trade value is around 24,000-26,000 right now for this type of car. So it seems like what I’m selling it for is fair and appropriate for the current market.
I would like an expert opinion- do I owe taxes on this transaction? I am selling for more than my family member originally paid BUT it is a fair trade price and he had bought it at a very low price from his friend.
Also- I am not employed and haven’t filed income taxes in a few years due to pregnancy and caring for baby so I don’t usually deal with taxes as of lately.
What should I do?