Author Topic: Selling your Shelby and the IRS  (Read 1170 times)

Rukiddin

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Re: Selling your Shelby and the IRS
« Reply #30 on: December 04, 2019, 07:28:13 PM »
As my tax expert told me.....”they write the rules,they enforce the rules,they will always win. Play by their rules and all will be OK” I have a few more cars to sell in the next few years and still can not believe what % I will pay. Tax laws change very often and you NEED to consult a tax expert to plan buying or selling. Really

SBCARGUY

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Re: Selling your Shelby and the IRS
« Reply #31 on: December 04, 2019, 07:29:51 PM »
With all due respect... WHY would ANYONE respond publicly to this thread?  8)

69mach351w

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Re: Selling your Shelby and the IRS
« Reply #32 on: December 04, 2019, 07:32:23 PM »
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.
LOL, You're kidding right?  So you're gonna send $350K CASH through the mail?  LOL, tell me what kind of insurance your gonna put on the box ::)
Coulda been a Shelby owner many times in the 80's/90's. Was always so close but yet, so far away for me......

Hockeylife

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Re: Selling your Shelby and the IRS
« Reply #33 on: December 04, 2019, 09:23:59 PM »
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 tax 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?

Trade in has nothing to do with “capital gains tax”- period. Trade in’s within some states can reduce “sales tax”, though.
Financial institutions send you, the seller of an asset within a taxable account, an IRS Form 1099-B. They also send this same form to the IRS. This form summarizes proceeds of the sale, and may also state cost basis, if known. This provides a mechanism to compare tax returns to known sales by the IRS.
Though there are no 1099’s issued for car sales, you are still obligated to report and pay capital gains tax if a gain is realized.

Shelby73

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Re: Selling your Shelby and the IRS
« Reply #34 on: December 04, 2019, 10:28:12 PM »
Just keep your cars till you die, when you die your kids can revalue your estates real estate and cars to current values and then they will not pay capital gains as long as they sell them for that stated value.  That's as long as your estate stays under 10 million for each husband and wife. Another words 20 million total roughly for the pair.
« Last Edit: December 04, 2019, 10:35:22 PM by Shelby73 »

CharlesTurner

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Re: Selling your Shelby and the IRS
« Reply #35 on: December 04, 2019, 11:21:20 PM »
SO, what if you sell it at Auction, there is no Trade In there?  Does BJ and the others tax 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?

I believe only if you live in the state where the auction is that there will be tax.  I sold a car at one of the Scottsdale auctions in 2006, I simply got a check in the mail, the total after house fees.  It was around $60k at the time, I never reported anything.  Had enough receipts to show a loss though, so I wasn't worried if the IRS started asking questions.

Charles Turner
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pmustang

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Re: Selling your Shelby and the IRS
« Reply #36 on: December 05, 2019, 12:43:35 AM »
Investment advisory fees are no longer tax deductible
Money earned on your primary home sale is no longer an unlimited no tax payable deal
Some states no longer allow a tax exemption on the trade in of your car, Thus you pay tax on the first 10k value of the new purchase even the first 10k was paid for by your trade in

Its only going to get worse....I had no idea there is tax payable on the profit from sale of your classic as well


TOBKOB

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Re: Selling your Shelby and the IRS
« Reply #37 on: December 05, 2019, 10:07:07 AM »
Just wait until they figure how to tax you for breathing... >:(
Just be careful how you vote... :)

TOB
« Last Edit: December 05, 2019, 12:30:18 PM by TOBKOB »
1969 GT350 owned since 1970