Federal Income Tax on Profit from sale of Charger?

[Charger_Fan]

A little off topic but, I wonder what the average amount of sales tax a car generates in its lifetime.

I you really sit and think about it the cars are taxed when new, and retaxed at every title transfer until they are junked, and then there is tax paid at "most" salvage yards for the parts off it. We are not talking small dollars anymore either with new cars and trucks selling in the 30-40K range. 

I've wondered that too.

[chargerbuck]

WHY WOULD YOU SELL YOUR CHARGER KEEP IT FOREVER

[694spdRT]

A little off topic but, I wonder what the average amount of sales tax a car generates in its lifetime.

I you really sit and think about it the cars are taxed when new, and retaxed at every title transfer until they are junked, and then there is tax paid at "most" salvage yards for the parts off it. We are not talking small dollars anymore either with new cars and trucks selling in the 30-40K range. 

You are confusing STATE sales tax and STATE property tax with FEDERAL tax.  The government doesn't see any gain when you buy a new vehicle, just the state you are in, unless you have a gas guzzler tax .  The STATE continues to get PROPERTY tax on your vehicle every year it is REGISTERED, however you get to DEDUCT the state property tax from your FEDERAL income tax each year.  When you sell the vehicle, the next person pays the STATE a sales tax, again the government see's no money UNLESS you report the sale on your 1040 tax form and the sale gained you a profit.  Bought 30k sold for 5k you get no deductions from uncle sam, however if you bought for 5k and sold for 30k and made no IMPROVEMENTS then by law you have to report the 25k as capital gain (not income).
It is all a ridiculous scam to get money for items that no one but yourself has worked for.  Lots of people get away with it becuase they never make a profit, but the few they do better watch out as Uncle Sam knows now how precious our cars are thanks to BJ and other auction houses.

I really don't think I was confusing the two. I was not taking about Federal Tax and that is why I said this is a little off topic. Whether it is at the Federal, State, or Local level it is still a governmental tax.  Regardless of who gets the tax, it is still a cost to the consumer. "Sales" tax is paid on a vehicle every time it is sold. For example, if I buy a new truck in Wisconsin for $40K that means 5% goes to the state and 0.5% goes to the county. That is $2,200 in tax paid for that purchase. In effect I paid $42,200 for the truck. Now, if I sell it in 2 years for $30K the new buyer gets to pay 5.5% on $30K again. That is $1,650 on the same vehicle so the new owner paid $31,650 for the truck.

My original question was just a pondering on how much tax is paid on the average vehicle throughout the course of its lifespan. Whether the gov't gets our money before we get it(income tax) or takes a little more from what is left(property and sales tax) was not really the issue.  

BTW: Isn't registering the vehicle is more of a "user" tax to pay for highway repair, etc.?  If I don't register the vehicle for use on a public road there really is no annual "ownership" tax in Wisconsin anyway.