auto sale

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Thomas Tuccillo
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auto sale

#1 Post by Thomas Tuccillo »

members: any way around sale of vehicle owned for yrs. with significant appreciation[ cap. gains] ? all help appreciated!

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Jules Dielen
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Re: auto sale

#2 Post by Jules Dielen »

around what?
Jules

Water pumps are for windshield washers only.

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Jim Liberty
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Re: auto sale

#3 Post by Jim Liberty »

You could give it to me. ...................Jim.
Jim Liberty

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Mike Wilson
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Re: auto sale

#4 Post by Mike Wilson »

I'd talk to a financial person. There might be a way to do an exchange.

Mike
Mike Wilson
Lomita, CA
'63 B coupe

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Jim Liberty
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Re: auto sale

#5 Post by Jim Liberty »

Come on Mike, don't cloud the issue with good advice. ..................Jim.
Jim Liberty

chris romney
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Re: auto sale

#6 Post by chris romney »

With the caveat that I'm not a CPA, I believe the Trump tax bill eliminated the ability to do trades or swaps on collectibles like cars or art.
 

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Charles H Jacobus
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Re: auto sale

#7 Post by Charles H Jacobus »

chris romney wrote:With the caveat that I'm not a CPA, I believe the Trump tax bill eliminated the ability to do trades or swaps on collectibles like cars or art.
I thought the Trump tax bill was supposed to reduce taxes :-)

Chuck
Current:
2012 Silver 991
1995 Midnight blue 993
1965 Red 356C

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Fond memories of 14 others (including a '63 Normal and a 61 S90) :)

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Mike Wilson
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Re: auto sale

#8 Post by Mike Wilson »

Sorry, Jim! I lost my head! Ha!
Mike Wilson
Lomita, CA
'63 B coupe

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Harold Singh
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Re: auto sale

#9 Post by Harold Singh »

Thomas Tuccillo wrote:members: any way around sale of vehicle owned for yrs. with significant appreciation[ cap. gains] ? all help appreciated!

Cash, gold, I’d avoid crypto currency.
Harold
In the garage:
1964 356C Irish Green
1995 993 GP White

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John Lindstrom
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Re: auto sale

#10 Post by John Lindstrom »

Even Silver seems to be at a fair price nowadays.

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C J Murray
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Re: auto sale

#11 Post by C J Murray »

Do you have a file full of receipts with every expense ever spent on the car? That can help.

Ignorance of our tax laws may not be a defense but other than professionals I wouldn't be inclined to claim the capital gains income. If you get a good deal on a 2017 Ford pick-up and sell it a year later for $2000 more are you going to report that income to the IRS? There may be a bit of a disconnect between the law and reality but those are personal decisions.
'57 Speedster
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'03 Ferrari 575M
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Jack Walter
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Re: auto sale

#12 Post by Jack Walter »

From what I've read cars are taxed differently from art - Capital gains on collectibles is 28% - cars are not considered to be collectibles and are taxed at 20% which a lot of CPA's do not know.
There was a provision for deferring taxes on cars using a 1031 exchange if you used the proceeds from the sale to buy a more expensive car but that was repealed at the start of 2018.

If you have receipts for all of the years that you have owned the car you can apparently use those to establish your "base" but I don't think you can pay yourself for the thousands of hours you might have personally invested in the car.

Yes it sucks - especially when your car appreciates significantly during your ownership.

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Ron LaDow
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Re: auto sale

#13 Post by Ron LaDow »

Jack Walter wrote:Yes it sucks - especially when your car appreciates significantly during your ownership.
Jack, I bow to no one in my dislike of the taxman, but I still find it hard to gripe when something I bought to drive and enjoy ends up putting a lot of extra money in my pocket when it gets sold.
Ron LaDow
www.precisionmatters.biz

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Jack Walter
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Re: auto sale

#14 Post by Jack Walter »

Ron LaDow wrote: Jack, I bow to no one in my dislike of the taxman, but I still find it hard to gripe when something I bought to drive and enjoy ends up putting a lot of extra money in my pocket when it gets sold.
I guess what really gives me heartburn (considering that my car is going up for auction in a couple of weeks) is that I can't deduct the thousands of hours I personally spent working on the car myself instead of paying someone else to do it to increase the cash value of what is tied up in the car. Instead I get to pay an extra twenty percent to the tax man for whatever I did to make the car more valuable. If I'd known that I might have been tempted to pay somebody to scrape and wire brush all of the old undercoating off the bottom of the car instead of doing it myself.

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Ron LaDow
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Re: auto sale

#15 Post by Ron LaDow »

Jack Walter wrote:
Ron LaDow wrote: Jack, I bow to no one in my dislike of the taxman, but I still find it hard to gripe when something I bought to drive and enjoy ends up putting a lot of extra money in my pocket when it gets sold.
I guess what really gives me heartburn (considering that my car is going up for auction in a couple of weeks) is that I can't deduct the thousands of hours I personally spent working on the car myself instead of paying someone else to do it to increase the cash value of what is tied up in the car. Instead I get to pay an extra twenty percent to the tax man for whatever I did to make the car more valuable. If I'd known that I might have been tempted to pay somebody to scrape and wire brush all of the old undercoating off the bottom of the car instead of doing it myself.
For what you went through to put that car back to what it was, you have my sympathy, for whatever that's worth. I can see, for instance, not spending a minute on fixing rental property; pay for it and deduct the cost.
For all that, I'd still spend the time on the Speedster, the Lusso and and the March; it was too much fun and too 'enlightening' about each of the cars to let the tax man keep me from doing so. I went to school on all three and would gladly pay the tax-costs even if I knew beforehand.
'Way back, when I first needed tax advice, my tax guy Simon made it clear: "Do not let the taxman/laws run your life." I have taken that to heart, avoiding taxes wherever I can, but paying them where the personal benefit out-weighs the taxes.
Ron LaDow
www.precisionmatters.biz

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