i bought the car in February, 2014 and after 7 months i have 23,000 miles. I would venture to guess that i will have 30k-40k miles within one year. I like the idea of selling the car to my sister for around $16k with 30k miles and getting the Plug-In to replace my Prius 2014 pk3. CarMax offered me $16k for my prius with the current miles. They said i had double the average miles. I went to KBB and Nadaguides and it appears the car with the present miles is around $17.000-19,000 miles and is still worth $17k-$18k with 32,000 miles, if i sell private party. i would expect to get closer to $15-$17k Private party after i hit 30,000 miles. Should i sell the car before i use up the factory warranty. I figured it would be a good selling point. I originally got the 2014 Prius to hold me over till the New 2015 Prius arrived and now that is delayed so i am thinking of getting the PIP with green sticker ( i live in LA) and selling the car cheap to my sister - she loves my Prius.
Carmax is a low Baller, and been a 2014 you could probably even go up to $20,000 just be sure you mention you still have factory warranty.
Selling to a family member should be a no brainer at $16k. But keep in mind the carpool lanes aren't much better than regular lanes in socal
i think my sister wants to pay $10,000, she asked how much i owe? When i told her $17k she balked and said she would get back with me? i figured that i would start at $17k and at Thanksgiving when we meet to offer her the car between $15k - $16k... Then she might think she is getting a better deal. If i start at $16k the car will be sold to her for $14k
How much factory warranty is enough? 3,000 miles or 6,000 miles which might command just 500+ dollars. I agree that if i use up the factory warranty my resale value will drop $1,000 at that point i would be better off getting an extended warranty and selling the car with that?
Selling to family members is ALWAYS a bad idea. Especially when there is a 170% price difference. She will feel ripped off or you will.
The car is worth more than $16k that carmax is offering. Your sister should not expect to give you less for such a new car. If she does, obviously she's the type of sister you can do without. I would pay you $16k without even looking at it, and I don't even need another car
Probably will sell the car closer to 32,000 miles so i am figuring it will be worth around $17,500 give or take. I paid $23k OTD, so i don't expect to get my money back. Depreciation the first year is the biggest hit. Plus you don't factor in the tax, on the total cost of the car, that's a foregone conclusion... So if my true cost was $21k for the car and i lost $4k for depreciation and excessive miles, then around $17k would be a fair price on both ends? Then there is the family discount when you are talking about siblings, so subtract another $1k. I brought it to CarMax to give myself a rock bottom price, worst case scenario - have to leave the country tomorrow? lol. So i would assume that even with another 10,000 miles the car would still be worth $17k private party and it would sell within a week. $18k i figure would take a bit more hustle, possibly 3-4 weeks? And gas prices would need to be $5 a gallon to get $19k The cars do hold their value and sell quickly, more so when gas prices go high.
The price to my sister is now $18k with around 29k miles on a 2014 prius. So MB Toyota used car manager offered me $19k for my Prius after he heard me discussing a PIP purchase with the sales manager. I declined his offer for $19k saying I had a better offer at $18k. I then asked why his offer was $500 more than Longo Toyota. He asked when the quote was done? i said about three weeks ago, so the prices jumps up, supply and demand. They have no more 2014 Priuses in stock. He said that they just sold a 2011 prius package 2 for $21k. He said my car would go for $22-23k on his lot used. That just seems crazy with such a high resale value, that i would get even money from my original purchase? I am gifting the car to my sister - which means that i pay taxes on my schedule C on the resale value of the car (kbb?) she pays taxes on that figure - around $13k and my write off is the extra 10k loss?
i would rather have the additional $1,000 in factory rebates. the carpool stickers are only good in SoCal. Most of my driving is against the flow of traffic.
You should probably consult a tax professional, but it's my understanding that you can only take a deduction for gifts to qualifying charities. A transaction between family members incurs a liability for gift tax (which is paid by the donor), based on the fair market value of the item. There's an annual exemption of $14,000 at the moment, so the tax would be due only on the amount over that. More info here: Frequently Asked Questions on Gift Taxes
thanks... what you mentioned above seems accurate under pub 559 IRC. i was thinking that i would need to recapture the residual value, apparently not the case. So the Kelley Blue book value states my trade-in value as approximately $14k in average condition. So the entire value of the car would be a write off in 2014 FYE; originally I was doing a Schedule 179 on my current 2014 car. Yet after my sister's 2001 Camry with 220k miles finally died, i told her i would gift her my car - she is Very Happy. So I can now purchase a PIP 2015 and write that off (schedule 179) in 2014 too?
Your post today is the first mention of the car being a business asset that you have been depreciating on a 179. I agree with ftl that a chat board is a very poor place to be seeking tax advice for a business.
