<prompt> Human: My car was part of the Ford transmission lawsuit issue. The car was bought back as part of Fords pre arbitraton buyback program, and they followed the lawsuits guideline of paying off the cars remaining loan balance what Ive paid minus a mileage fee. The thing is, that combined buyback is more than the original sale price of the car.Sale price: 16kLoan balance 6kCash payoff 12kDo I have to pay capital gains on that extra 2k? Thanks for your help! Edit: thanks to everyone for your help. The consensus seems to be that this is equivalent to undoing the sale not selling the car to Fords buyback department. I didnt gain anything from a tax standpoint - the original sale price doesnt matter in this case; rather the amount that I have paid into the car vs what ford returned to me. So no need to worry about capital gains tax, but if they send me a tax form from the sale I need to include it with my filing.Assistant: Am I the only one confused by this?I dont understand why theyd give you more than what the vehicle was sold for. Did they include all the financingregistration fees and interest you paid as well?Human: Yes. The class action lawsuit specifies down payment registration fees payments - a age based on the mileage at your third transmission hardware replacement. I got lucky - I had the TCM and clutch replaced almost immediately and the TCM replaced again shortly thereafter so that lost was very very small. Assistant: I think that part of the confusion here is coming from the differences in how you are looking at the transactions.When you say the sale price of the car was 16k, is that the true total including registration fees, down payment, equity rolled in from a trade-in, paperwork fees, sales tax, etc etc?That 12k that they paid you, in theory that is supposed to be their calculated amount of what you have paid minus mileage, so havent you paid at least 12k in the period of time youve owned the car in monthly payments, trade-in value, down payment, anything else?Human: Yes, the true total was 16k. The loan was 14k. in the time that I had the loan, I paid 12k in principal interest on my monthly payments. I had 6k left on the loan when the buyout occurred, which ford paid off.  <response>: I paid 12k in principal interest on my monthly payments.So essentially, if you had simply walked into the bank today and paid off the car, your cost for the car would have been 18k 12k payments 6k to pay off the loan, not 16k. You didnt come out 2k ahead, you came out even well, in a way you did come out very much ahead, in that you have had a car to drive for the last several years which is going to have cost you basically nothing, but from a capital gains perspective you came out even.I assume that the 12k you are noting above includes your downpayment, not just the monthly payments. 