So my wife bought a car back in 2003 that was repossessed a year or so later. Now the IRS is saying the cancellation of that debt counts as income on my 2009 taxes and I owe money. I've talked to a tax person who says I can have that taken care of if we can prove that when it was repossessed the car was worth more than the debt that was cancelled. My question is, how do I find out what a 2003 Toyota Corolla was worth used back in 2003? I haven't a clue how to track that down. I did some google searches but haven't come up with much. Anyone have any experience looking this sort of thing up?
Go to the public library and ask to look at the Chronicle want ads in 2003. They will at least have it on microfiche. That will give you solid numbers...and solid proof that you can print out. Plus a way of estimating this is look at the depreciation rate of Corolla's today. What is a 2009-2010 Corolla worth now versus when purchased new? We can assume they depreciate at the same rate as they did in 2003, no? Then it is a matter of simple math to devalue a 2003 at the same rate as a 2009 or 10. Not absolute proof. But something you could do right now, just to see if you are in the ballpark...then go to the library if you think it is worth your time.
Even if you found KBB/NADA/Black Book from 2003, you won't find a listing for a Corolla of the same year. Used car values from the current model year won't usually be published until the following year.
