Do I need to pay taxes on cash payment when filing Form 8300 for private vehicle sale over $10k?
Title: Do I need to pay taxes on cash payment when filing Form 8300 for private vehicle sale over $10k? 1 I'm in the process of selling my F-150 in a private sale and the buyer wants to pay mostly in cash. The total is going to be around $14,500. After doing some research, I found out I need to file a Form 8300 since it's over $10k in cash, but I'm totally confused about whether I'll owe taxes on this money or not. Every website just talks about the reporting requirement but doesn't clearly say if I'll be taxed. I bought the truck 6 years ago for $22,000, and I'm only selling it now because I need to pay down some medical debt from a surgery I had last fall. If I get hit with a big tax bill on top of everything else, it's going to completely defeat the purpose of selling it. Any insight on this would be super appreciated!
19 comments
Join the conversation
Ingrid Larsson
8 Don't worry too much about this. Form 8300 is primarily for reporting large cash transactions, not for determining tax liability. Whether you owe taxes on the sale depends on if you're selling the truck for more than you paid for it (capital gain) or less (capital loss). Since you mentioned buying the truck for $22,000 and are selling for $14,500, you're actually selling at a loss. Generally speaking, personal vehicles are considered personal-use property, and losses on personal-use property are not tax deductible. But the good news is that you won't owe any taxes on this sale since you're not making a profit. The Form 8300 is just to help the IRS track large cash transactions to prevent money laundering and other financial crimes. File the form within 15 days of receiving the cash payment, but don't stress about owing taxes on this particular transaction.
0 coins
Ingrid Larsson
•15 Thanks for explaining! What if I had made a small profit on the truck? Would I need to pay taxes then? Also, does it matter if part of the payment is a check and part is cash, or do I still need to file the 8300 regardless?
0 coins
Ingrid Larsson
•8 If you had made a profit selling the truck, then yes, you would potentially owe capital gains tax on that profit. The tax rate would depend on how long you owned the vehicle (short-term vs. long-term capital gains). Regarding split payments, Form 8300 is required when you receive more than $10,000 in cash in a single transaction or in related transactions. If the cash portion is less than $10,000 but the check brings the total over $10,000, you don't need to file Form 8300. Only if the cash portion exceeds $10,000 would you need to file.
0 coins
Ingrid Larsson
7 After reading your post, it reminded me of when I sold my boat last year and had the same concerns. I spent hours googling and calling around until someone recommended I try https://taxr.ai to analyze my situation. I uploaded my purchase receipt and some details about the sale, and it immediately clarified that I wouldn't owe any taxes since I was selling at a loss. The tool explained exactly how Form 8300 reporting works versus actual tax liability. It saved me from unnecessarily setting aside money for taxes I didn't actually owe. The analyzer also provided a breakdown of what documentation I needed to keep in case of questions later.
0 coins
Ingrid Larsson
•3 Does this tool work for other tax situations too? I've got some crypto transactions I'm confused about for next year's filing.
0 coins
Ingrid Larsson
•19 I'm skeptical about these online tools. How accurate is it really? Did you verify the information with an actual tax professional?
0 coins
Ingrid Larsson
•7 Yes, it absolutely works for other tax situations! I initially used it for my vehicle sale, but the platform handles everything from crypto transactions to rental income. It breaks down complex tax rules into simple explanations. I completely understand the skepticism. I actually did verify with my accountant afterward, and he confirmed everything was correct. The difference is I didn't have to pay him for an hour of time just to ask this one question. The AI analyzes current tax code and explains how it applies to your specific situation.
0 coins
Ingrid Larsson
3 Just wanted to update after trying out taxr.ai - it was actually really helpful for my situation! I uploaded some details about my crypto transactions and it gave me a clear breakdown of what I'll need to report next year and what documentation to save. It even flagged some potential deductions I hadn't considered related to my trading activities. Definitely saved me the headache of trying to figure out all the crypto tax rules on my own.
0 coins
Ingrid Larsson
12 Something nobody's mentioned yet - if you're having trouble getting answers from the IRS about Form 8300 questions, I highly recommend using https://claimyr.com to get through to an actual person. I had a similar situation with a large cash transaction and needed clarification on some details. After waiting on hold for 2+ hours multiple times and getting disconnected, I tried Claimyr. They managed to get me through to an IRS agent in about 40 minutes, and I got all my Form 8300 questions answered directly. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c - basically they wait on hold for you and call when they get an agent. The IRS agent confirmed I was only reporting the transaction, not paying tax on the sale, which was a huge relief.
0 coins
Ingrid Larsson
•10 How does this even work? Sounds like some kind of scam to me. Why would anyone be able to get through the IRS line faster than I could myself?
0 coins
Ingrid Larsson
•22 I've been trying to reach the IRS for weeks about a Form 8300 issue. This service seems too good to be true. Did they actually get you through to a real IRS agent?
0 coins
Ingrid Larsson
•12 It's not a scam or magic - they use specialized dialing technology that continuously redials and navigates the IRS phone tree until they get through. Then they call you when they have an agent on the line. It's basically like having someone wait on hold for you. Yes, I spoke to a real IRS agent who answered all my Form 8300 questions. The agent was able to confirm that my vehicle sale wouldn't be subject to taxation since I was selling at a loss, but I still needed to complete the form for the cash transaction reporting requirements. Having that direct confirmation from the IRS gave me complete peace of mind.
0 coins
Ingrid Larsson
10 I was totally skeptical about Claimyr, but after seeing the comment here I decided to try it out of desperation. I'd been trying to get through to the IRS for days with no luck. This service actually worked! They got me through to an IRS representative in about 35 minutes, while I had been unsuccessfully trying for hours. The agent answered all my Form 8300 questions and confirmed I wouldn't owe any taxes on my motorcycle sale since I sold it for less than I paid. The agent explained that Form 8300 is just for transaction reporting, not for tax collection. Money well spent to get a definitive answer directly from the IRS!
0 coins
Ingrid Larsson
6 Just a heads up - make sure you keep good records of your original purchase price of the truck. Even though you're selling at a loss and won't owe taxes, having documentation of your original purchase and the final sale price is important in case you ever get questions about the Form 8300.
0 coins
Ingrid Larsson
•1 That's good advice. What kind of records should I keep specifically? I have the original purchase agreement from the dealership, but it's been 6 years. Should I also do anything special to document this sale?
0 coins
Ingrid Larsson
•6 You're on the right track with the original purchase agreement - that's perfect. For the current sale, create a detailed bill of sale that both you and the buyer sign. Include the vehicle details (make, model, year, VIN), the agreed sale price, date of sale, and both parties' information. Take photos of the cash received and the transfer of the vehicle. Keep copies of any checks or payment receipts. Also, save a copy of the completed Form 8300 that you submit to the IRS. Store all these documents for at least 7 years, which is the standard IRS recommendation for tax-related documents.
0 coins
Ingrid Larsson
25 I just filed Form 8300 last month for selling my boat. One thing to note - if the buyer gives you installment payments and any single payment is over $10k in cash, or if the combined cash payments go over $10k within a 12-month period in related transactions, you still need to file Form 8300. The penalty for not filing can be pretty steep!
0 coins
Ingrid Larsson
•17 Do you know what the penalty actually is? I sold a classic car last year for $11,500 cash and totally didn't know about this form.
0 coins
Mason Kaczka
•The penalty for not filing Form 8300 can be significant - it's $50 per form if you're less than 30 days late, but can go up to $280 per form if you're more than 30 days late (or intentionally disregard the requirement). For your $11,500 cash sale, you should definitely file the form even though it's late. The IRS is generally more lenient if you voluntarily correct the oversight rather than waiting for them to discover it. You can still file it now with a letter explaining the delay - better late than never!
0 coins