Quote:
Originally Posted by Thunder22
In TN, are there any laws around the # of cars you buy/sell in a year and whether that makes you a "dealer" or not? i think the rule is more than 5 in a year. Also how do you handle sales tax? I'm afraid to pick this up as a hobby, it could ruin me lol
https://www.ftc.gov/tips-advice/busi...-used-car-rule |
The law is you can't sell more than I think five. Lady at the DMV told me it wasn't something they really watch too much. Unless you get reported or register a lot it shouldn't be a problem. Two of mine I legitimately traded and there is no kind of limit on that so they didn't count against me.
As far as taxes make sure to get a bill of sale from the owner. If not you pay taxes on whatever NADA says market value is.