When you sell a car do have to claim it on income tax return?

In general, you do not have to claim the sale of a car on your income tax return. This is because the sale of a car is not considered a taxable event. However, there are some exceptions to this rule.

If you sell a car for more than $600, you may have to pay taxes on the profit from the sale. The amount of tax you owe will depend on your income tax bracket.

If you sell a car to a dealer, the dealer will usually take care of the tax paperwork. However, if you sell a car to a private individual, you will need to file Form 1099-S with the IRS. This form reports the sale of the car and the amount of profit you made.