Sold a 356 and used a 1031, as CPA or car owner?

[Mark Roth]

Tom, I understand your dilemma. Hard to plead ignorance if you are a CPA.
However, who knows if the car looks like Adam's cars?

See
http://apiexchange.com/index_main.php?id=8&idz=243

Excerpt:

The “like-kind” requirements for personal property are much narrower than the standards applicable to real property. Moreover, a taxpayer must establish to the satisfaction of the IRS that the collectible exchanged under Section 1031 was held primarily for investment or for use in a trade or business and not for personal enjoyment. This can be trickier with collectibles that may be purchased, at least in part, for the owner’s personal enjoyment.

[Walt Nolte]

Interesting how some of us interpret history, English an early American colonial.

Walt Nolte
59 A Coupe
Wyoming and
Recovering Historian

[C J Murray]

Interesting how some of us interpret history, English an early American colonial.

Colonial revolution could be defined as leaving England. Wasn't taxation the issue? Weren't the colonials rebelling against taxation? Yes. It really doesn't matter since over time all governments assume the attitude that the fruits of others hard labor are theirs for the taking. It's the natural order of things. Then comes revolution then high taxes and the cycle repeats itself. Freedom or free stuff?

[Al Zim]

Tom: you may have some cash at your house but you are only allowed to carry 10K around. Ask Adam about some of his adventures carrying money. I think you should find a broker that will sell you the car of your dreams after he purchases from your seller then takes you car in trade. In Texas all you have to pay is the difference in price for registration. He can sell your car and make some money and you can have a reduced tax burden. I would say that will be and impossible dead when selling you 1953 car.
Two things I fear the most are the IRS and the Texas Sales Tax people. I will be glad to tell you of my 3 week sales tax audit.
It will take a large truck to carry the silver gold is another story al zim

[Martin Benade]

You can carry as much cash around as you dare, with no limit. It is just that transactions over 10K are supposed to be reported to the IRS.

[Adam Wright]

You can carry as much cash around as you dare, with no limit. It is just that transactions over 10K are supposed to be reported to the IRS.

Not on a plane, take it from the guy who was detained. Carrying large amounts of cash runs the risk of seizure by cops.

[C J Murray]

Not on a plane, take it from the guy who was detained. Carrying large amounts of cash runs the risk of seizure by cops.

Hello Mr Wright, we're from the government and we're here to help you.

[Adam Wright]

I was lucky, the time I was detained. About a week before another guy in the business had warned me about carrying cash. He was stopped in the mid-west with a backpack full of money, en route to CHicago to buy a Jag, the cops seized his money, it took 3 months and about a third of it to hire a lawyer to get it back, and needless to say he lost out on the car. He told me to have a detailed itinearary. So when I got grabbed at the airport and taken away, the cops started grilling me, I calmly asked if they wanted to see my trip itinerary. They looked a little surprised but said ok, I should them every stop, what I was buying, who I was buying it from, I even showed them where I was stopping to have lunch with my Dad's twin brother. They said I had all my ducks in a row and we all ran to catch my flight like old friends. One did ask me if I worried about all that cash, this was when my hair was down my back, I hadn't shaved in three days, and it was 8AM before my coffee, I said, "Do I look like I have more than $20 on me?" They laughed and said, no I didn't.

[C J Murray]

That is a disgusting story of life in the "land of the free". How did we let it get this bad? Having cash is no proof of a crime.

[David Gensler]

Marriage (and this one, unlike my first is a very happy 30 year one) works in strange and complicated ways, and I don't know how this will turn out but my guess is that marital happiness is worth more than deferring some tax.

Wisest words I've read here in long time!
DG

[Miguel Antonetti]

I was lucky, the time I was detained. About a week before another guy in the business had warned me about carrying cash. He was stopped in the mid-west with a backpack full of money, en route to CHicago to buy a Jag, the cops seized his money, it took 3 months and about a third of it to hire a lawyer to get it back, and needless to say he lost out on the car. He told me to have a detailed itinearary. So when I got grabbed at the airport and taken away, the cops started grilling me, I calmly asked if they wanted to see my trip itinerary. They looked a little surprised but said ok, I should them every stop, what I was buying, who I was buying it from, I even showed them where I was stopping to have lunch with my Dad's twin brother. They said I had all my ducks in a row and we all ran to catch my flight like old friends. One did ask me if I worried about all that cash, this was when my hair was down my back, I hadn't shaved in three days, and it was 8AM before my coffee, I said, "Do I look like I have more than $20 on me?" They laughed and said, no I didn't.

That's a real cool and rejuvenating story... Thanks!!!

[Larry Coreth]

Adam,

Do I assume correctly that you were stopped after they had inspected your carry-on luggage at the security gate and discovered your stash ? If it is not illegal to carry large sums of money (>$10k), under what pretense would the Feds seize the money ? Question you maybe.

If one defers capital gain tax via a 1031 deal, until when is the gain deferred ? Retirement, death (a lot of good it does me then !) ?

Unless I were in the business, like you Adam, and I were to sell a car at a substantial profit (2 or 3 times the original cost) for cashwhich I had owned for several decades , how would the IRS know about the deal and secondly how would they know what my cost basis were ?

The IRS in my experience is not that omniscient and also have surprised me with their liberal interpretation of the tax code when I had questions about taxable income ! This is not to say I believe IRS people all have haloes over their head either!

[Wes Bender]

If the buyer doesn't report the sale and provide you with a 1099, the IRS has no way of knowing about it. In any event, be sure and keep ALL your records of expenditures on your car. With the exception of ordinary maintenance items, they can be added to your acquisition cost to arrive at the true basis. Unfortunately, unless you are in the business of restoring and selling cars, you cannot include your own labor costs.

Wes

[Tom Coughlin]

Wes I assume you did not understand that my wife is a CPA and is required to follow all tax laws as am I.

[Adam Wright]

Adam,

Do I assume correctly that you were stopped after they had inspected your carry-on luggage at the security gate and discovered your stash ? If it is not illegal to carry large sums of money (>$10k), under what pretense would the Feds seize the money ? Question you maybe.

If one defers capital gain tax via a 1031 deal, until when is the gain deferred ? Retirement, death (a lot of good it does me then !) ?

Unless I were in the business, like you Adam, and I were to sell a car at a substantial profit (2 or 3 times the original cost) for cashwhich I had owned for several decades , how would the IRS know about the deal and secondly how would they know what my cost basis were ?

The IRS in my experience is not that omniscient and also have surprised me with their liberal interpretation of the tax code when I had questions about taxable income ! This is not to say I believe IRS people all have haloes over their head either!

Larry,
I had the money in the side pocket of my cargo pants. I wasn't going to take it out but a TSA person noticed the bulge and asked me what it was, I told her money, she made me go through security with my boarding pass in one hand and the brick in the other, as soon as I got past the metal detectors, the cops took me away.