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Is sale of an inherited automobile a capital loss?

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    #16
    Originally posted by Burke View Post
    1. She would have to refrain from any personal use of the car;
    2. Sell it to an arms-length buyer for FMV or close to it;
    3. Document its value via Kelly Blue Book or other method.
    Thanks Burke. That makes this issue totally clear.
    Believe nothing you have not personally researched and verified.

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      #17
      Originally posted by Husker
      Can the sale of an inherited car be considered a capital loss?
      It is not only considereda capital loss, it is a capital loss. However, since the car was a personal asset, it is a nondeductible capital loss.

      Originally posted by Burke
      And to a related party, no less.
      See how easy it is to make a wrong assumption? In the OP it only says that the person who inherited the car sold it to the deceased's son. It didn't say that the buyer was related to the seller. In fact in a later post it says the person who inherited the car was the deceased's girlfriend, and that the person she sold the car to was not related to her.

      Regarding the original question, I have to wonder where the woman who inherited the car got the idea her "loss" on its sale is deductible. Hairdresser? Bartender? Auto mechanic? Couldn't possibly have been a regular on this forum ...

      ... could it?
      Roland Slugg
      "I do what I can."

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        #18
        Inherited Property

        Originally posted by JON View Post
        you never get a deductible loss. You only can have taxable gains. I do not think you have to go any further than that.
        Inherited property does not enter the realm of a personal capital asset unless it becomes personal by virtue of personal use.

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          #19
          Agreed. Just because it was a car, does not mean it was a personal asset. It is treated the same as any other inherited asset. Like a house, it becomes personal property if it is used as such.
          Last edited by Burke; 02-13-2017, 12:31 PM.

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