How much do I have to pay in income tax from a car sale in an estate?

Answer by  Att4372 (1704)

In most cases, nothing. Selling off property does not usually result in income. If the cars are part of inventory (in a business) or part of a collection of rare vehicles and income is generated (capital gains), then the estate pays income tax on any profits. Individuals do not pay income tax from sale or distribution of property.

Answer by  Chaneygirl (1755)

You won't have to pay any income tax from the car sale in an estate. The estate may have to pay estate taxes, but if the car wasn't sold for any more than the value at the date of death, there is no estate income with respect to the car.

Answer by  Att4372 (1704)

Normal cases, none. Estate assets are sold as if it were a tag sale. No income is generated. If antique cars are sold, capital gains taxes might be due.

Answer by  worker2746 (2434)

You will pay income tax on the capital gains portion of the sale from the estate. It will all depend on what the bill of sale reads for tax purposes.

Answer by  Kdm (180)

You must first determine what the basis of the car was when you inherited it. Subtract that number from the sales price, that will be the taxable amount. The actual tax is dependent upon your AGI. Max Captial gain tax will be 15%, unless it was a classic, then 28%.