The IRS and selling personal cars???

[MotownMadman]

The IRS is very much aware of the value of collector cars and has been for quite some time. A few years back I took a 66 BB Vette to Bloomington for judging, that show has a car coral of a great number of upper end Corvettes for sale, I was in disbelief when I noticed that the IRS had a booth set up right on the premises to record all Corvette sales as far as who was selling, buying, and the amount of money involved in each transaction. Income tax can be a repetative situation, my parents owned and operated a upper scale antique business for years, when dealing with previously owned items the tax man can benefit repeatedly. One piece of antique furniture can be resold dozens of times to different owners, each time taxes must be paid if there is a profit over investment.The same is true with cars, Money Made, Money Paid. Previously owned items should not be taxed repeatedly, even worse on the high end the seller has to pay tax on income, the buyer has to pay a luxury tax. They get you coming and going. American Beauracracy at it's finest. However, things could be worse, Garnet M20, how is the tax structure in England?
Motown

[MGINLA]

In the United States all gains from Hobbies are taxable. The losses from hobbies are not deductible. There is no longer a $17,500 limit. On another note in California you are charged Sales Tax on the full purchase price reguardless if it is a used car. "Born free taxed to death" Mark the reason they want cash is because it is harder to trace. By the way did you get the Corvette you are looking for?

[SamLBInj]

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Nope...bills of sale haven't even been discussed yet - we never got that far. In fact, this is the second time in recent months were the seller has wanted to be paid all or most of the amount in cash because of the "IRS". Obviously, this is difficult to do long distance, so it causes me a problem. Personally, I really don't think the profit generated by the car would be of much consequence to either the owner or the IRS, so I really don't understand the concern.

Sam, when you find a nice '67 Z for $35,000 please let me know - I'll take two!

[/ QUOTE ]
I was guessing that you were dealing with that guy that wants to swap a 69 Z/28 for the 67 Z/28...I didnt want to type in what the car should sell for in case the other guy did not know and was reading this, but you basically just told him his car is worth 75K. ..I always have a cryptic message in all my posts, and you have to read between the lines. By doing this I'm slowly brainwashing everyone into selling me their Yenko camaros for 5 grand
Sam

[MotownMadman]

One angle that will work well in this type of situation is a person is allowed to claim $17,000 per year tax free on a hobby, which can be whatever you claim it to be. It has been a few years since I researched this subject, so the amount could have gone up, down, or the law done away with completely. Worth checking into though.
Motown