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Anon
By AA | Moderator | 844 Posts | 26 January 2011 at 10:14am

It has been a rough year with cars. I traded my lovely car for an upgrade but ended up buying a lemon and since then have bought and resold a total of three cars.

I heard a rumour that you are not allowed to sell more than four cars a year or you will get taxed.

Is this true?

I am not a car dealer.

Can I sell my fourth car without getting into trouble with taxes?

Josh

From the "Ask Jack" archives - 28 August 2009

jbiddle
By jbiddle | Community Member | 1657 Posts | 26 January 2011 at 10:39am

A person is treated as 'carrying on the business' of motor vehicle trading if:

The person holds out that they are carrying on the business of motor vehicle trading (that is, they are actively involved in selling cars); or
The person sells more than 6 motor vehicles within a 12 month period; or
The person imports more than 3 motor vehicles within a 12 month period