RMV says limit of 3 car sales before you need a dealer license.
In these unusual times where flipping can be worthwhile, I’m wondering if trading in a car or selling it to say Carmax is considered a “sale”. Based on the wording below it seems to only be a limit if you sell to a consumer which I assume means private sale to a private buyer, no dealer involved.
Here’s RMV wording…
“According to Massachusetts state law, anyone who sells more than three cars in a twelve month period
is considered a dealer and must have a Class 2 dealer’s license.”
“A private seller is any person who is not a dealer who sells or offers to sell a used motor vehicle to a consumer.
Under Massachusetts law, anyone who sells more than three cars in a one-year period is considered a dealer and
must obtain a used car dealer license from their municipality.”
You are leasing a car for personal use, drove it for a bit but didn’t like the color/options/whatever, and decided to trade it back to the dealer and get another one.
No not interested. Just might end up with a 4th “sale” this year. Normally don’t do this. These are all purchases, not leases. And all trade-in or sold to carmax.
Yeah as if they would allow that…it’s a one way street.
Losses from the sale of personal–use property, such as your home or car, are not deductible. It is not eligible for the capital gains loss of up to $3,000 annually . For more information, see About Publication 523
That’s why if you actually enjoy doing this, getting your wholesale license might be worth it. Even if it’s just a hobby. Lots of businesses start that way…
