The IRS and selling personal cars???

MotownMadman · #1 01-21-2004, 06:29 PM

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 · #2 01-21-2004, 06:50 PM

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?

**Zedder** · #3 01-21-2004, 07:21 PM

Sam,

Stop talking in code that I don't understand

No, it's not that car. In fact, I sent that guy an email and never got a response from him??? Did you? As for $75K - I said I'd buy 2 for $35K each, but I doubt I'd spend $75K for one unless is was truly phenomenal. To the best of my knowledge, the most one has actually sold for has been about $60K. However, there have been a number offered for more than that. Coincidentally, a guy contacted me yesterday that has a nice Blue RS Z that he is interested in selling. When I asked how much, he said he had no idea what they are worth and asked my opinion. I hear this same comment over and over again regarding these cars. I guess not enough of them change hands for people to get a feeling for the market.

M: Been hot for two Corvettes recently so I'm not sure which you are referring to. One turned out to have a problem with the paperwork and the other sold while I was trying to get someone to inspect it for me. No big deal, I am willing to wait for the right car.

Matt: Want to talk about taxes? I pay 15% of the declared value for any car that I bring into Canada!

**Zedder** · #4 01-21-2004, 07:22 PM

Thanks Russ...I appreciate you checking that out for me. BTW, did that fellow ever contact you?

rafbody · #5 01-21-2004, 11:06 PM

No Mark. I have never heard from the guy.

Jeff H · #6 01-21-2004, 07:28 PM

I wouldn't have a problem paying tax on a profit since it's basically the same as income.

**SamLBInj** · #7 01-21-2004, 07:51 PM

[ QUOTE ]
I wouldn't have a problem paying tax on a profit since it's basically the same as income.

[/ QUOTE ]
You would if you got bumped into the top bracket

Let say you are married and making 50K a year, You sell that 500 original mile 69 ZL-1 camaro you bought back in 1972 for 3 grand for 700k and make a 697K profit...Then tax becomes substantial and the tax man comes licking his chops

You could buy a Yenko for what you would be paying in taxes

Now on the other hand, you could be sneaky and have a second bill of sale for $3,500.00

but if you get caught you will be best friends with some guy named Bubba and playing house in his little 6x8 room

I say Legalize drugs, control them, opens lots of rehabs and tax the ship out of it like tobacco and well never have to pay income tax again

Be sorta like reliving the 60's all over again

Sam

NEW · #8 01-21-2004, 08:13 PM

TAXES in Norway!.

On all cars older than 30 years we pay 24 % tax on the invoice value, in addition there is a one time only tax for all cars coming in to the country regardless of age, on abt. 1000 US$.

On cars as new as for example the Hot Rod Camaro i bought last year, sticker price abt. 45K, add. 24%, plus if i want to have plates for registration, add 70KUS$, and this is true!!!

A new C5 Corvette is costing just about 185 K US$,

I have dealer plates, so i do not put registration plates on my cars, this lets me pay only 24% on the invoice value..

Our IRS is way harder on us, than yours!!

NEW

**SamLBInj** · #9 01-21-2004, 08:22 PM

[ QUOTE ]
TAXES in Norway!.

On all cars older than 30 years we pay 24 % tax on the invoice value, in addition there is a one time only tax for all cars coming in to the country regardless of age, on abt. 1000 US$.

On cars as new as for example the Hot Rod Camaro i bought last year, sticker price abt. 45K, add. 24%, plus if i want to have plates for registration, add 70KUS$, and this is true!!!

A new C5 Corvette is costing just about 185 K US$,

I have dealer plates, so i do not put registration plates on my cars, this lets me pay only 24% on the invoice value..

Our IRS is way harder on us, than yours!!

NEW

[/ QUOTE ]
What do you mean "add 70K for Plates"? Holy Snikees!
Damn, thats down right theft...How much does a Volvo cost you?
Sam

NEW · #10 01-21-2004, 08:29 PM

What do you mean "add 70K for Plates"? Holy Snikees!

What i mean, is that if i would like this car to have real license plates, and be able to use it daily as transportation, just as all the Volvos and Mercedes here, i would have had to pay another 470000 of my kind of money, and that would be abt. 70000 US$,

The IRS know what they want, and how to get it!

NEW

Dedicated to the Promotion and Preservation of American Muscle Cars, Dealer built Supercars and COPO cars.