Is selling a motorcycle considered a business?

If I sell my motorcycle which is a Honda cafe racer custome and make a huge profit am I considered a business and have to file as a sole proprietorship and file taxes on the profits that way.

Selling one vehicle doesn't constitute a business. You should pay taxes on the profit but in reality, the government will not know you made a profit on the bike.

It the motorcycle in titled in your name it is being sold by an individual not a company. Any profit is technically income for tax purposes.

No. But you have to report it as income on your next tax statement.

No, you are just some guy selling your bike. Make sure to full out a bill of sale and title transfer form and let the DMV know. The only thing you would have to do is pay the taxes from the profit you made when selling it. Lets just say you made a $2000 profit, you would have to pay the IRS $300 for income tax.

Not if its just one, at least i wouldnt think so

No. Don't even report the profit.

Even if you think you made a profit you are probably mistaken. Let's say you made that hypothetical $2000 someone else mentioned. What had you done with the bike between the time you bought it for $500 and sold it for $2500? Count all the stuff, and add it up. Here we go, more hypothetical numbers…

$80 had the wheels trued
$174 new brakes, $74 at first, plus $100 reworking because the first guy screwed it up
$32 replaced ignition wires. Didn't help at all.
$133 replaced the rest of the ignition. Still cuts out at times.
$350 Had fuel lines drained and then re-drained where water got in. Finally okay.
$25 brand new seat worth $450, got it at flea market WOW!
$87 front shocks, installed them yourself. Really nice!
$34 fancy painting on fuel tank.
$94 redid fancy painting, better paint. Looks neat!

Okay, now let's add all that up.
It's $1009. And you forgot about $47 and then $225 for the new mufflers, the first one didn't work.

Oh, and what about the case of beer you bought for your buddy Ernie who did a neat job "for free" detailing everything before you sold the bike? That was $33, but Ernie did really good work.

So add on that other stuff. Now it's $1314.

Hold on a minute, we're not done. You rented your neighbor's garage where you worked on the bike, $25 a month, five months, $125. Now it's $1439.

Oh, and the hours you worked on it yourself. Probably about what, 18 hours a week, but only for three of those five months. That's 13 weeks, times 18, is 234 hours, and spreading the remaining $561 over those hours gives you… Hold on, are you ready for this?

You were working for $2.40 an hour. Do you think you owe any taxes on that?

Hey, it's all hypothetical. Not your real numbers. But the usual situation is that people trying to run any sort of "business" on an amateur level seriously underestimate the costs involved.

If you somehow are seriously concerned that you "should do something" you could talk to an accountant. The accountant will be Yet Another expense!

No. But you would owe taxes on your gain. 90% of people would not pay it. But 99% of people lose money on cars/bikes/whatever.

No, the private sale of a vehicle is not a business.

If you sell one as a private seller, it is not a business. If you buy them, fix them up and resell them and do that several times a year them it is a business.