elaine-mcarthur
New Member

When selling a car used for work , does "proceeds of distribution" include the remaining vehicle loan or only the amount received from the sale after the loan is paid?

When vehicle sold to car company, the company paid the existing loan and then returned the balance.  I am unclear as to which is to be used for the CRA filing for "proceeds of distribution".

TurboTaxJennifer
Moderator

Investors and rental owners

Proceeds of disposition is the actual amount that was given for the vehicle regardless of how the money was applied - the bill of sale amount. In your case, it would be the amount to pay off the loan and the balance you received.