Capital Gains on muscle car (state of PA)

[YENKO DEUCE REGISTRY]

Sorry! Yes, the car is a Capital Asset by the IRC definition, and does not appear to be a 'Collectible' by the IRC definition. So, the 15% rate would apply - I assume the IRS hasn't changed it recently.

Your post used the term 'Antiques' which is one of the terms used in the definition of 'Collectibles' per the Schedule D description. So, the official terminology is 'Collectible' which apparently does not include 'Cars' as 'Collectible' 'Antiques'.

[mockingbird812]

15% - THANKS!

[COPO 70 RS/Z28]

Marlin,

If a car is a capitol asset can it be placed in a trust??

I guess if someone wanted to give a car to there son could they sell it for a dollar Etc.

Im somewhat less than a padwan when it comes to stuff like this

[427king]

[ QUOTE ]
I guess if someone wanted to give a car to there son could they sell it for a dollar Etc.

[/ QUOTE ] Dewpending on the value of the car a father and mother could gift 20K or 10K each[may be a bit higher now]. So if a car was worth under 20K parents could gift thier car to thier son,not sure how it would work on a much larger dollar car,maybe take more than one year to transfer ownner ship??

[YENKO DEUCE REGISTRY]

I'm not an expert on trusts, but it would be worth checking out. Keep in mind that for personal property that is inherited from your parents, your 'basis' (read: cost) is the FMV (fair market value) at the time of death. This is good. Here is why.

When schoneye meets his maker, and Joe gets his yellow deuce, it's as if Joe paid the FMV at the time schoneye moves on. That means that the cap gains from '70 until the day it's passed along are not taxed! I'll have to check this out again, as it's been awhile since I looked this one up, but that's the gist of it.

So, I don't think you have to worry about the 'Gift Tax Exclusion' that chuck is alluding to - plus, I think that's just for cash, but not sure.

[Schonyenko2]

[ QUOTE ]
I'm not an expert on trusts, but it would be worth checking out. Keep in mind that for personal property that is inherited from your parents, your 'basis' (read: cost) is the FMV (fair market value) at the time of death. This is good. Here is why.

When schoneye meets his maker, and Joe gets his yellow deuce, it's as if Joe paid the FMV at the time schoneye moves on. That means that the cap gains from '70 until the day it's passed along are not taxed! I'll have to check this out again, as it's been awhile since I looked this one up, but that's the gist of it.

So, I don't think you have to worry about the 'Gift Tax Exclusion' that chuck is alluding to - plus, I think that's just for cash, but not sure.

[/ QUOTE ]

He ain't gettin squat. I had the deuce before him, or his mom.I'm takin it with me.

[L72COPO]

Amen

[x Baldwin Motion]

[ QUOTE ]
Marlin,

If a car is a capitol asset can it be placed in a trust??

.............

[/ QUOTE ]


Yes, cars can be put in to a trust. We even have the two daily drivers in the family trust.