Selling your Shelby and the IRS

[trotrof1]

Strange how the govt people couldnt be found when we were restoring our cars, doing the diligent research to make them tangible assets. Only at the sale do they pop out and say gotcha, way to go buddy.

[BGlover67]

 

[Shelby_r_b]

Truly.  The IRS always gets theirs.  As a buddy of mine once said, "The IRS is an institution where it's legal to be guilty until proven innocent."

[67 GT350]

Who would think all of this just to sell a car. Its just a hobby. Really God, it is just a hobby!

[Rukiddin]

Receipts,receipts,receipts. Keep EVERY one to justify the capital gains of a sale (any sale) I was happy to sell one of my cars until I was notified of the details of selling. And don't even THINK about the phony paper being sold through internet....IRS in well aware of those,and if questioned,gets really pissed about even trying to submit false records. Did you buy ANYTHING at a swap meet? Get a receipt? Haha. Expenses for travel? Yeah,right. Many of us have zero records of money spent pursuing our hobby,only a check when project is sold. No deductions unless a business-type venture. Plan very well for a $100,000 capital gains .......each person has very different situation and you MUST consult a tax expert,not HR Block part-timer or the guy on the next bar stool. IRS knows how to play the game...they wrote the rules

[427Larry]

There is one thing you all are missing. The IRS Law was changed about three years ago, to anything over $3900.00 in cash, is now reported, put in or out taken out.

[kjspeed]

No one has even touched on the Civil Asset Forfeiture Laws and what happens if law enforcement catches you with $350K in a suitcase. Hint: they keep it all until you can prove it's legally yours. Then you might get it back. Someday. Most of it anyway.

[Hockeylife]

There is one thing you all are missing. The IRS Law was changed about three years ago, to anything over $3900.00 in cash, is now reported, put in or out taken out.

No, not changed. Still $10,000.

https://www.fincen.gov/sites/default/files/shared/CTRPamphlet.pdf

[tesgt350]

No one has even touched on the Civil Asset Forfeiture Laws and what happens if law enforcement catches you with $350K in a suitcase. Hint: they keep it all until you can prove it's legally yours. Then you might get it back. Someday. Most of it anyway.

That's why you box it up real good and FedEx it to yourself, then when it arrives, you put it in a Safe.

[2112]

No one has even touched on the Civil Asset Forfeiture Laws and what happens if law enforcement catches you with $350K in a suitcase. Hint: they keep it all until you can prove it's legally yours. Then you might get it back. Someday. Most of it anyway.

That's why you box it up real good and FedEx it to yourself, then when it arrives, you put it in a Safe.

And do not use it to make big purchases.

[98SVT - was 06GT]

If you think it's bad here go to Holland. I knew a guy who bought cars here and imported them. He was charged 10% of the value when he imported it. When he sold it he was charged 10% of the sale price and the buyer also got dinged for 10%. 30% on one deal went to .gov.

[Rocket]

The $10000 only applies to cash. Nothing else.

[427Larry]

There is one thing you all are missing. The IRS Law was changed about three years ago, to anything over $3900.00 in cash, is now reported, put in or out taken out.

No, not changed. Still $10,000.

https://www.fincen.gov/sites/default/files/shared/CTRPamphlet.pdf

That may be, but that is not what my bank told me. She said they have to kept track of everything in or out on anything above $3900.00 cash, she also said I am not suppose to tell you this either.

[Greg]

I certainly understand trying to see how you can keep most of the "capital gains" but a friend of mine tried to "skirt" the issue and the IRS did do an audit, found it, made him pay MUCHO $$$ in fines, interest, threatened him with tax evasion/jail, attorney fee's etc.... not worth it!

Guys, just be smart, keep receipts, storage, maintenance, repairs, etc.... as some have said and pay your capital gains tax.  These cars have gotten too valuable not to be seen by the IRS. 

And by the way, he is on their list and he gets audited most every year now.

[tesgt350]

I think some of the high end dealers specialize in this sort of transaction -- if you buy another car from them:
"Most states require sales tax to be paid only on the difference between the price of your trade-in and the vehicle you're buying, not the full price of the next car. But this tax benefit doesn't apply if you sell your old vehicle yourself."

So, trade that car in to a specialty dealer, pay a bit more/less and drive out with another cool ride.

I'm no expert but this may also forestall the IRS getting involved as you didn't make any money. Perhaps. Tax attorney/specialist should be consulted.

SO, what if you sell it at Auction, there is no Trade In there?  Does BJ and the others take out the Tax and send it in or send in a Report on the Sell to the IRS or  do they just take their cut and let it go?