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Updated over 3 years ago,
Tax question! Selling a car for down payment
Hi all, I have a question for those of you with some tax knowledge. While I didn't start out with a 'small loan of a million dollars', my parents were the absolute coolest and bought me a brand new car back in high school, a jeep wrangler. That was 7 years ago, but after they paid off the jeep we switched the title to my name. Its in good condition and the blue book is about 17,000.
This month I plan to sell the jeep to use some of the proceeds on a down payment for a property. My question is-- do I have to pay capital gains on that 17k? Like I said, it was given to me (not sold) by my parents and it is paid off. My understanding that is if it was still in my parents name then they would NOT pay capital gains because they paid more for it than they sold it for. However, since I technically didn't pay anything for it - will I have to pay taxes? I've read a ton online but can't seem to find a straight answer. Any insight helps - thank you in advance.