69 427 Yenko Nova's

[Lynn]

Just a thought. Can't help but think of the tax implications of "sharing" some of the profit. One of the hazards of my profession I guess. Anyway, just for the record, if Impalaman were to purchase this car and resell it for a profit, I am sure you all know the profit is a capital gain, and is taxable income in the year received.

Example:

buys the car for 20,000

Sells the car for 50,000

"Shares" 10,000 of the profit with the current owner.

He would likely still be liable for taxes on the whole 30,000 profit, as the IRS would consider his check to the current owner as a gift. Being under $11,000, there are no gift tax implications.

How to remedy?

If he sells the car for $50,000 and wants to "share" $10,000 of the profit with the current owner, just have the new purchaser write two checks, one to him and one to the current owner. That way she is liable for her own taxes. Whatever she realizes on the sale will be capital gain to her anyway, and this is just more than she expected. Besides, as a Sr. citezen she is likely in a lower tax bracket.

I realize this whole deal may not even happen, but just wanted to make sure no one got tagged for more than their fair share of taxes. Don't believe in tax evasion, but am a huge fan of tax avoidance.

Lynn