Means test income and sale of car or other personal property

[redhunter]

The means test uses the term "income", which generally means the gross receipts of a transaction less the costs to generate that receipt. For salaries, there is generally no "cost"; so I understand why you need to report the gross amount as income. For business income or rental income it seems that Schedule I follows this general definition of "income" since it defines income as receipts less costs or expenses. My questions is what about sales of personal property like cars or "toys" where you incur a loss on the sale? If I sell a car for $10,000 that cost me $12,000, I have a $2,000 loss, which makes me think I don't report it as income for the means test (I don't report this as taxable income either). As a further example, suppose I take $5,000 of my severance payment in month 1 of the means test to buy a car. In month 4, I realize that my unemployment could last awhile and I decided to sell the car for $4,500. It doesn't seem that I would be required to double count the $4,500. However, if I sold the car for $5,500, I have $500 of income and I can understand that I would need to report the $500 for purposes of the means test (the $500 is also taxable income).

[justbroke]

The means test uses the term "income", which generally means the gross receipts of a transaction less the costs to generate that receipt.

You're way overthinking this. It's income regardless of source or taxability (period).

As a further example, suppose I take $5,000 of my severance payment in month 1 of the means test to buy a car. In month 4, I realize that my unemployment could last awhile and I decided to sell the car for $4,500. It doesn't seem that I would be required to double count the $4,500. However, if I sold the car for $5,500, I have $500 of income and I can understand that I would need to report the $500 for purposes of the means test (the $500 is also taxable income).

You report the $5,000 and the $500.

I think you're thinking too much.

[redhunter]

You're way overthinking this. It's income regardless of source or taxability (period).

You report the $5,000 and the $500.

I think you're thinking too much.

But I already reported the $5,000 3 months ago when I received it as wages.

[justbroke]

But I already reported the $5,000 3 months ago when I received it as wages.

So, now I'm confused. Are we talking about the lookback period? (The calculation of your Current Monthly Income per the Means Test.)

[redhunter]

So, now I'm confused. Are we talking about the lookback period? (The calculation of your Current Monthly Income per the Means Test.)

Yes, the 6 month look back period. I'll try to use a less confusing example (maybe): the first month of the look back period I have wages of $7,000. During that month I used $5,000 of that money (I had no other source of funds) to purchase a car. Three months later in the 4th month of the look back period I sold the car for $5,500. How much of the sales proceeds from the car is considered income for the means test since I've already reported $5,000 of the $5,500 as income in the first month of the look back period?

[justbroke]

Yes, the 6 month look back period. I'll try to use a less confusing example (maybe): the first month of the look back period I have wages of $7,000. During that month I used $5,000 of that money (I had no other source of funds) to purchase a car. Three months later in the 4th month of the look back period I sold the car for $5,500. How much of the sales proceeds from the car is considered income for the means test since I've already reported $5,000 of the $5,500 as income in the first month of the look back period?

Whatever the gain is... $500.