Sold my Range Rover Lease and got $15k in profit

Off-Ramp
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Mans would probably come out ahead if he financed a cayman or 911

$15k + a maybe discount + low rates + strong residuals

And yes I agree - money not put to work is money wasted

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Correct, forgive my wording. This recouped money payed for almost 18months of the 20months I payed for the RR lease. I perfectly know that these kind of cars should not be leased, but it is still better for me to do so because it comes out on my companyā€™s name.
Back to my original question, not sure if I owe any tax on this money and my accountant did not even know you could sell your lease. So I need to find a new accountant.
Thank you all for you comments

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Wording makes a big difference here, as you would likely owe tax if it was profit as compared to just reducing your costs.

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Quite the critic.
I am already set up for retirement with my millennial approaches, so I can spend a few extra hundreds a month. We all love cars here but not everyone is fortunate enough to drive the car of their dreams.
Cheers

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Perhaps with the profit you could have learned the English languageā€¦apologies in advance in you are a foreigner and English is not your first language!

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Just ignore that guy. He was even suspended for making racial jokes. Spends all his time here looking for peopleā€™s buttons to push.

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Just me speaking for me, but this wouldnā€™t be on my taxes in any way shape or form.

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Ok lefty - canā€™t make jokes - slow mode - this forum is becoming very orwellian.

Marketplace is what needs regulation - not the forum -

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If you canā€™t have civil discourse like an adult without resorting to name-calling, then you donā€™t belong on the forums. Nothing ā€œOrwellianā€ about asking for basic decency toward others when people are coming here to specifically ask for help and advice.

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Bizarreā€¦ so if his cost basis was 14k and recouping 15k gave him a 1k taxable gain he shouldnā€™t report it?

Call me crazy but if I were interested in tax evasion Iā€™d rather do it for much larger sums. Whatā€™s the upside in hiding a small taxable gain?

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Relax - I was saying as a big picture thing - not this exact thread - people should be able to engage in discourse as they wish

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If the inability to make racial jokes sticks in your craw that much, maybe you have other issues.

Iā€™m sure there are other forums that would welcome you with open arms.

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Well, my comment is as relevant to the ā€˜big pictureā€™ as it is here. Try to be kind and respectful to others, especially those who are seeking help. You never know when you might need it someday.

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Which ones? Care to share??

Iā€™m not picking a bone with the thread creator - just providing my take on the discourse

The OP asked for different viewpoints and he got that. Bringing in someones history on the forum when that person wasnā€™t really derogatory is kinda below the belt

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They booted the dynamic BMW duo methinks.

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Since when?

Itā€™s alright buddy, some people are just very angry and love to look down upon others.

If we ainā€™t having fun what are we doing?

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The answer is no, you do not have to pay any taxes because you had no gain.

If the purchase price plus taxes and fees was, for example, $70k at signing and you managed to sell it now for over that amount, you would have a taxable gain.

Essentially, here all you did was buy a car for $70k and sell it some time later for $69k. You have a small loss which will do nothing for you if this is a personal car.

Now if you put the whole car on your business you may be able to take the difference as a loss depending on how youā€™ve been depreciating and recapturing.

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The one correct answer in this thread. I am not a CPA, but my understanding is that the IRS treats autos not owned/leased in a business as capital assets., and I see zero mention of IRS Pub 544:

The question seems to hinge on:

  • Whether the car was sold for more than you paid (whether that is MSRP or your sales price, ask your accountant). People flipping their 1LT or 4xe for more than MSRP should definitely talk to their accountant
  • Whether the entity that buys your car transmits a 1099 to the IRS (a question I always, always ask when a business is cutting me a check for $600+)
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You can donate the 15K to an online stranger to avoid tax:). Just kidding. But the market is so unbelievable.