New tax laws may subsides a 356 purchase less, via sales tax

[Steven Murray]

Schedule A line 5 let you pick either state and local income tax or general sales tax as a deduction. I think this will all be gone for 2018. For 2017 I think if you paid $7000 sales tax or $2000 in state income tax you could choose that $7k 356 sales tax as your deduction. So maybe your taxes would have been $1200 less thanks to uncle sam.

[Steven Murray]

I got this a little bit wrong, looks like there still might be a 10K allowance for local taxes. I kind of floated this out here so folks could correct me .

A few years ago I was chatting with a tax guy and brought up the idea that maybe I should become a registered car dealer since they don't pay the sales tax on inventory, but he said corporate tax rate on appreciation/income is much higher than personal income tax rate for collector that happens to make some money. That might no longer be true. Corporate dropped to 21% i think, possibly lower than personal rate.

[Adam Wright]

Being a dealer in NY is no joke, you have to have a physical location, not your house. Plus they inspect it, crazy stuff like a safe for keys and titles. Plus it costs thousands to get and maintain the license.
One benefit, you can throw plates on any car you want!

[Steven Murray]

I think I'm just too old and tired to get into the dealer thing but the 'plates on any car' is appealing since I am already up to 8 and go through the ordeal of transfering plates among them. And who doesn't want to be Wayne Carini? It seems like a NY dealer can only sell a car that passes inspection. There is a subaru on ebay with the CEL light on , so the dealer states that if he sells to any NY-er it can only be a parts car and he'll have to issue a salvage title. I went to look at a 1958 Jag XK150 at a local dealer and after he gave me a price, he then upped it by 5% when it hit him that the car would have to pass NYS inspection.