Are sale proceeds of a car taxable income?
In Income Taxes
Only if you made a profit; i.e., you received more than you paid for it. Then you would pay tax on the gain.
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They are usually not subject to Income Taxes, but may be subject to Estate Taxes. It would be VERY unusual for income taxes to be due. Federal estate taxes are not an issue if you are of modest means, but your state may have estate, inheritance, or death taxes that could impact most anyone.
Taxable income is the portion of income that is the subject of taxation according to the laws that determine what is income and the taxation rate for that income. Generally, taxable income refers to an individual's (or corporation's) gross income, adjusted for various deductions allowable by statut…e. The main questions put by most individuals in any jurisdiction are "what makes up my taxable income" and what tax rates should be applied such that I can work out my tax liability to the state. For example, suppose within a year, one person earned $100,000 from work, made $50,000 profit from selling stock, and won the lottery for $1,000,000. This person has, prima facie, an income of $1,150,000. However, some of this income may be taxed at a lower rate or perhaps not taxable at all. In most western countries, 100% of regular salary (above a certain threshold) is taxable and a portion of Capital Gain (ie profit from selling stock or real estate) is taxable. ( Full Answer )
Answer . Oh boy....this question is essentially answered by the 100,000s of pages of rules called the Internal Revenue Code! However, the at least equally large amounts of explanatory writings, statutes, case laws, etc. need to be considered too. And after all that, the answer is generally not… always particularly clear! It is fair to say whether something is taxable income or not is situational on many factors. who the taxpayer is (personal or corporate, or other) and what it was received for (and sometimes who it was received by) all are important considerations. In a simplified answer - virtually anything you receive as income is taxable...and the things that aren't are normally very specifically identified as being non taxable (like interest paid on some special government and municipal type bonds). For any "normal" person, simply following how the payor reported it (identified by the form W-2 or 1099 you receive) is an adequate indicator. And then you need to consider if things you paid are deductible against that income to determine if it (or you) actually have any tax to pay. It is not uncommon for someone to have even a reasonable amount of taxable income, but have deductions (dependents, other taxes, certain business costs, medical costs, etc) that reduce the net amount to below where a tax is due. ( Full Answer )
Answer . The amount of income subject to income taxes ; found by subtracting the appropriate deductions ( IRA contributions , alimony payments, unreimbursed business expenses, some capital losses , etc.) from adjusted gross income .
Personal Injury proceeds are NOT taxable . No. Personal injury proceeds are considered compensation of injuries and losses, it is not a "gain" or "windfall" under the tax codes.. Actually, whether personal injury damage awards are taxable depends on what the award is for. If it is to compensate …for personal physical injuries or sickness, then it's not taxable (IRC Section 104(a)(2)). Emotional injury that is the result of of physical injury may not be taxable; however emotional injury that is the result of nonphysical injury (for instance, defamation or trespass) is generally taxable. Likewise, lost wages that are the result of physical injury may not be taxable. (See IRS Guidance: Lawsuit Awards and Settlements and Rev. Ruling 85-97.) ( Full Answer )
Answer . Well, your right in understanding that anything sold at a profit from your tax basis would create gain income, including a car or such. And I'm sure all of us are alert to, and report that faithfully. It's complicated by the fact most people may not track their basis on items of pers…onal property. But, as your question acknowleges the acquisition was done as a qualified gift, (presumably by parents or such), virtually all of those transfers include the recepient getting a "stepped up basis", that is the basis at market value at time of transfer to you. That is presumably lower than the amount your selling it for. Hence, no income. ( Full Answer )
Answer . Well, your right in understanding that anything sold at a profit from your tax basis would create gain income, including a car or such. And I'm sure all of us are alert to, and report that faithfully. It's complicated by the fact most people may not track their basis (especially tax b…asis) on items of personal property. But, as your question acknowledges the acquisition was done as a qualified gift, (presumably by parents or such), virtually all of those transfers include the recipient getting a "stepped up basis", that is the basis at market value at time of transfer to you. That is presumably higher (as the car is worth lesds now) than the amount your selling it for. Hence, no income. (In fact a loss on sale of a personal asset, which cannot be used). ( Full Answer )
Answer . While it is not how one defines cash flow...to the degree that Taxable income generally follows the cash method of reporting, rather than the accrual method, it would be similar.
Proceeds of an endowment policy is not taxable. Regardless of aperson's tax rate, proceeds of an endowment policy is tax free. ?Ã¦
Yes, a seller's concession stand is taxable income. Depending onthe state that tax rate would vary. Charities are refunded taxpayments if filed under 'Unrelated Business Taxable Income '. Thisis only if all workers are volunteers.
The IRS states that only settlements due to physical or emotional injury are non taxable, for instance if you received a settlement for mesothelioma. States however may tax settlements as ordinary income.
Your Q almost makes no sense. Only if your car was repoed and sold for more than the debt/basis, did you receive anything yourself...and then the question would still be what your basis is in it (that is your cost plus all those other things like the repo fee's, vs what you received). If your …the one repoing it...it is essentially a business transaction. in most places you can' make money on the repo anyway. ( Full Answer )
Because the car is a fixed asset, the depreciation of the vehiclemust be recorded up to the date of sale. The proceeds should berecorded as credit if profit was earned or debit if there was afinancial loss.
There are many different types of trusts out there today.Taxability depends on the type of trust that is being liquidated tothe beneficiary. Some trusts are taxable and some are not.
If you are not behind on your mortgage payments, most likely we will not be able to begin the Short Sale process. We never advise a homeowner to stop making payments. If you are current on your mortgage but are unable to make your payments anymore, contact your lender. This would be a good time to p…roceed with a Loan Modification. If you do, however, become behind on your mortgage payments, we can assist www. disappearingmortgage . com you at that time. ( Full Answer )
Yes. The lender must send a 1099-C to you and the IRS, so its a matter of record.. A loan isn't, but at the time the debt is forgiven or cancelled, it is the same as if you were simply given money . (Or even closer to if you stole money, which is also income..you effectively got income by not payin…g what you were supposed to).. Or looking at it another way, the lender would have taxable income of that amount more, had you done what you promised, (which in fact they probably already reported as income from a sale and just had an account receivable for the amount yet to come), and will now be able to take a bad debt deduction for the amount they didn't receive ( and recover the income tax they essentially overpaid).. It is called Cancellation of Indebtedness, or COID for short, ( Full Answer )
Taxable income/loss is the difference between the basis of the property and the sales price. If they are identical, there is no income/loss. A sale in the settlement of an estate would generally appear on IRS Form 1041. Its taxability would generally be based on the cost basis, cost of sale includin…g preparation for sale & the sales price. If the sale is more than six months post-mortem an appraisal as to value at date of death and/or six months post date of death would be needed to establish cost basis. ( Full Answer )
I am not an expert - but - for what it is worth, I would have thought they were not taxable, as they are not really earnings - they are payment to you to compensate for harm done to you.....however it is best to contact a tax expert or an accountant to advise you properly. IMPROVE: It would also d…epend upon the state where you live, and if punitive damages were awarded. Typically, you are not taxed on compensatory damage awards, but you are on punitive damages (loss of consortium, mental anguish, etc.) that are awarded in addition to any compensatory damages awarded. ( Full Answer )
The way this question was phrased is just TOO JUICY to pass up. Imagine, being out of a job, and finding out that the government wants to tax your LACK of income! I'm sure that's not what the question was, but rather "unemployment COMPENSATION" That clarifies a lot, knowing that it's compensation.… The income tax that is levied upon you, is a compensation tax. Additional information: In no state does the state (or the Federal government) charge the employee an unemployment tax or premium. They are always paid for by the employer through his payroll taxes, so that when the employer discharges a worker, without justifiable cause, the worker is protected against unfair job loss. That being said, unemployment benefits are income taxable, when combined with all other income received, with an exemption for a given minimum amount received as benefits. ( Full Answer )
money that has been inherited has already been assessed for inheritance tax based on the amount left in the deceased estate. Once you have inherited the money you are not liable for inheritance tax.
For Federal income tax purposes, taxable income is the portion of a taxpayer's gross income on which his regular income tax liability (before payments and credits) for the year is based. Income from any given source is taxable, unless the Code specifically says it isn't taxable. Calculation: Taxabl…e income starts with gross income, which according to the US Internal Revenue Code, is all income from whatever source derived. Gross income is then reduced by certain adjustments allowed by the IRS (e.g. for student loan interest, alimony paid, and 10 or so other specific items) to get adjusted gross income. Adjusted gross income is then reduced by exemptions (both personal and for any dependents) and itemized deductions (or the standard deduction) to arrive at taxable income. ( Full Answer )
Yes, imputed benefit income is subject to federal taxation. It is considered Taxable noncash compensation but is not included in gross pay.
For the individual taxpayer using to 1040 income tax return for the tax year 2009. Your taxable income is the amount after you complete your income tax return to Line 43 of the 1040 tax form. To determine the taxable amount you will be reporting all of your worldwide gross income on the income tax… return less any adjustments to come up with your adjusted gross income (AGI) Line 37 and 38 of the 1040 tax form less your deductions and exemption amount to come up with your taxable income Line 43. Go to the IRS gov website and use the search box for 1040 and choose the 1040 instructions and follow the line by line instructions all the way to page 2 line 43 taxable income of the 1040 tax form. ( Full Answer )
Tax is charged on that amount which is actually received by thecompany so if the amount is received but it is not yet earned thenit will be taxed although accounting tax will not be charged anddue to that reason we have deferred taxation concepts to dealt withthese kinds of situations.
Up to 85% of your social security income can be taxable if you or your spouse have other income that makes it so. You will complete an additional schedule to determine whether or not this income can be taxable or not.
Income from a garnishment is just as taxable as the same income would be if the person had paid the bill in the first place without the need for garnishment.
Yes the income from the trust is taxable income to the owner of the trust or to the beneficiaries of the trust. Some one will have to pay income taxes on the income from the trust.
No proceeds from sale of building is part of cash flow statementwhile profit or loss on sales of building is part of net income inaccrual base accounting while cash base accounting it is part ofnet income or loss.
In the year that the particular item of income becomes available and actually received by you.
The original cost of a capital asset plus any adjustments to the basis of the asset and that will make be the adjusted cost basis when the capital asset is sold. Go to the IRS gov web site and use the search boxes for publication 550. Refer to Stocks and Bonds under Basis of Investment Property in c…hapter 4 of Publication 550, Investment Income and Expenses.. Cost Basis . The basis of property you buy is usually its cost. The cost is the amount you pay in cash, debt obligations, or other property or services.. Unstated interest. If you buy property on a time-payment plan that charges little or no interest, the basis of your property is your stated purchase price, minus the amount considered to be unstated interest. You generally have unstated interest if your interest rate is less than the applicable federal rate. For more information, see Unstated Interest and Original Issue Discount (OID) in Publication 537.. Basis Other Than Cost . ( Full Answer )
2.5 lakhs. Anyone earning less than 2.5 lakhs in a year need notpay any taxes
Go to the IRS gov web site to find some more information about S Corporations . S corporations are corporations that elect to pass corporate income, losses, deductions and credit through to their shareholders for federal tax purposes. Shareholders of S corporations report the flow-through of inc…ome and losses on their personal tax returns and are assessed tax at their individual income tax rates. This allows S corporations to avoid double taxation on the corporate income. S corporations are responsible for tax on certain built-in gains and passive income. To qualify for S corporation status, the corporation must meet the following requirements:. ( Full Answer )
All of your barter income is taxable in the US according to the IRS. When you set up a one-on-one barter with another business, each business is expected to report the value of that exchange as income - on your regular Schedule C. If you join a formal barter exchange, they will (and must) report …your barter income to the IRS with a 1099-B. This is a benefit to businesses because, any barter income you spend for business expenses will be deducted the same as cash. A business can also DONATE barter income to a 501(c)(3) to receive the same tax benefits as if you donated cash! ( Full Answer )
Gross Income - Above the Line Deductions = Adjusted Gross Income - (Deductions +Exemptions)= Taxable Income
No. However, you may still have to report it depending on your CA gross income, CA adjusted gross income, age, number of dependents, and filing status. See FTB website for current chart information.
No. TANF is not taxable, and should not be included on your federal income tax return. Per IRS Pub. 525 "Do not include in your income governmental benefit payments from a public welfare fund based upon need..."
No since you donate it (don't get money) What you get is a receipt for value to offset income like other charitable donations.
Determining if the benefits are taxable depend supon whether the premiums were paid before or after taxes. If before taxes, the disability income you receive is taxable. If youpremiums were paid after taxation, the disability income benefits you receive are not taxable.
There are multiple ways to do it. The old way is by book, using the Tax Table. On the Federal return it is on the Publication. (Such as 2010 Publication 17, Page 254) States have their own tax table. The faster way is to search for a tax calculator.
If you have dependants, and they went to day care etc you went to school, and got financial aid to help pay your tuition. you donated clothing or other types of goods to charity's, anything like that.
Whether your teenagers income is taxable depends on how much money the teenager made. Further nformation can be found at the Internal Revenue Service and the sites for each individual state.
The official website of the Internal Revenue Service includes information on what income is taxable and what isn't. The website contains a pithy, neat list of the basics, but a few examples of income that can't be taxed include welfare and child support.
The best way to determine if your income is taxable is to ask someone who is a certified CPA. They will be able to help you with this as well as file your taxes .
In order to determine what portion of your income is taxable you will need to look at a schedule from the IRS. The IRS provides these updated schedules annualy and your taxable portion is based on the amount of money you make and any dependants you may have.
Provided you paid for the orginal boat with post tax dollars, and the boat was not used in a business which declared the boat as an asset of the business, there is no tax. If the boat was used in the operation of a business, and was part of the assets, you must declare the sale on your business taxe…s. Otherwise there is no taxes. ( Full Answer )
Yes, because all income is taxable unless you have an exception, write-off, or similar. There are tax tools built within your account to make your books easy. If you search "Paypal IRS" in your search engine you will see that the IRS has taken notice of individuals not reporting Paypal income. There…fore, just like a bank Paypal sends the information to the IRS if you hit their threshold. See the related link for further information.. ( Full Answer )
That depends on the laws of the county in which you and or your sibling reside. In some countries there is an inheritance tax that may have to be paid.
Yes. Death does not get you out of paying income taxes in the United States. I do several returns a year for deceased people. This is called a Decedents Return. If the person dies on January 1st they have to file a return for the entire year if they had income over the threshold to file. The Adminis…trator or whomever is in charge of the Estate is responsible to file and pay the any taxes due from the Estate. ( Full Answer )
It really doesn't matter so much what you do with the proceeds froma sale of a home to make sure it isn't taxable. Of course, you canalways purchase another home if you don't already have another homeas your residence. Purchasing another home if the one sold wasrental property will not help, as you …will still pay taxes on anygain from the sale. If it is your residence that you sold and had again from, you have an exclusion of gain of principal residencethat you can use. If you are married and file a joint return, youcan exclude up to $500,000 of sales gain of your residence.Individuals who file single can exclude up to $250,000 of gain.There are a few requirements that you must meet and it must bereported on your tax return but the exclusion, if used willeliminate income tax on the gain. ( Full Answer )
It depends on the laws of the time. For many years, the differencebetween what you paid for the house and its improvements and whatyou sold it for was taxed. IRS Publication 253 has the informationthat you need to determine if your sale qualifies for incomeexclusion.