I'm sure duke would have an idea about this

If you buy a car and end up turning it around for a profit within the same year, how is that reported on your taxes? so let's say hypothetically I buy a car for $20k and I decide to sell it and I get $23k. Do I report $23k in income? Could I go into a higher tax bracket? Sorry, my tax knowledge is limited.

[Edited on October 12, 2007 at 9:57 PM. Reason : tax bracket]

10/12/2007 9:53:53 PM

you do nothing.

10/12/2007 10:03:00 PM

if you reported it, you'd only report profit

but i agree with Ivan

10/13/2007 12:56:33 AM

yes, at most you would report profit, not revenue. but.. really, don't bother.

10/13/2007 10:02:19 AM