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.

[the427king]

That is correct. However if you lose 30K on a sale and do not profit on another you cannot take the 30K as a capital loss. It can only be used against profit

[southernfriedcj]

Originally Posted by the427king

That is correct. However if you lose 30K on a sale and do not profit on another you cannot take the 30K as a capital loss. It can only be used against profit

I'm not CPA, but if you run you hobby like a business(Car Collector, LLC) I would think you could write off individual losses. Write off trips to auctions as well.