Ask an expert
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
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