Barrett Jackson

[jdv69z]

Originally Posted by Lee Stewart

If you buy a car, keep it for a year and make a profit - that profit minus expenses is taxed as Capital Gains. But if you lose money on the car - you can't write that off.

I believe if you sell a car at a loss, you can use the loss against another car sale on which you made a gain (profit) to offset the capital gain and thus the capital gains tax. Same as you would with sales of stocks. So tax would be on the net gain of the 2 sales. But I am not an accountant.