I just sold my truck, is it considered earned income?

If anything, it will be capital gains.

If you can show you LOST money on the sale, it's another thing


How much did you actually pay for it and when?

 

You will pay more than $10 k in capital gains unless you reinvest.

 

That's why I sell to private buyers and show a loss or don't even report it. Screw Uncle Sam

 

It is a depreciated item and is not subject to capital gains as one poster stated.

It is ordinary income. The reason is that it was an expense during the life of the asset.

It is based on the purchase date, the amount of depreciation allowed and the basis in the asset at the time of the sale.

If the book is valued at zero, then the sale proceeds are income under ordinary income.

 

Wait until you have to explain the removal of the asset from the depreciation schedule when under an audit.

 

I gifted it

 

Be prepared. That will not work either.

 

whenever I sell anything that requires the involvement of the state or federal government I tell them I gifted it to whoever bought it. and there are people out here who will buy a truck and pay cash and willing to say they got truck for free and put it on the road even if they paid 15-20k. I am all about screwing the government out of taxes. they take too much as it is. I actually wheel and deal on a lot of things in life to avoid taxes and government involvement.