Q: In Texas if the buyback I received from Volkswagen is less than the original price I paid for the vehicle, do I owe tax?
VW Emissions Settlement for Owners in Texas
A: Property settlements for loss in value of property that are less than the adjusted basis of your property are not taxable and generally do not need to be reported on your tax return. See Publication 4345 https://www.irs.gov/pub/irs-pdf/p4345.pdf.
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