Are there any tax deductions that can be taken when you sell your vehicle at a loss?

February 18th, 2010

I was massively upside down on my last vehicle, and sold it at a very large loss. Are there any tax deductions I can take advantage of?

viajero_intergalactico - February 18th, 2010 at 9:30 am

basically no.

oh well.
frediwhite@verizon.net - February 18th, 2010 at 9:30 am

Only if you are a car dealer and the vehicle is part of your inventory. Otherwise it’s personal property.

Sorry.
ninasgramma - February 18th, 2010 at 9:30 am

If your vehicle was a business asset you may have a gain or a deductible loss when you dispose of the vehicle. The amount of gain or loss depends on the amount of depreciation you have taken on the vehicle. It does not depend on the amount of debt you had on the vehicle.

If your vehicle was not a business asset, your loss is not deductible

In either case, if debt on the vehicle was cancelled, the amount of cancelled debt will be reported to the IRS on Form 1099C. You will receive a copy, and you report this on your tax return. The amount of cancelled debt may be taxable to you.
travelguruette - February 18th, 2010 at 9:30 am

No sorry. No loss deductions on personal items. You only have to report gains on personal items. Not really fair

Vehicle Tax Deduction . com