Profit selling used cars privately and taxes
Scenario:
X buys a car privately for $10,000
X pays 13% tax when doing ownership transfer
X spends $11,300 after taxes for the car.
6 months later buyer Y is willing to pay X, $12,000 for the car
So question is, does X need to pay taxes on the profit he made? If yes, is the total profit $2000 (12,000-10,000) or $700 (12,000 - 11,300)
X buys a car privately for $10,000
X pays 13% tax when doing ownership transfer
X spends $11,300 after taxes for the car.
6 months later buyer Y is willing to pay X, $12,000 for the car
So question is, does X need to pay taxes on the profit he made? If yes, is the total profit $2000 (12,000-10,000) or $700 (12,000 - 11,300)