Author Topic: Selling your Shelby and the IRS  (Read 8503 times)

tesgt350

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Selling your Shelby and the IRS
« on: December 03, 2019, 11:44:03 AM »
Just curious about this...… If you sell your Shelby for $350,000 in CASH, what do you do to keep the IRS from taking a huge chunk of that?
 

6s1640

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Re: Selling your Shelby and the IRS
« Reply #1 on: December 03, 2019, 12:24:03 PM »
Make sure you have enough expenses, such as storage and maintenance to offset any gains.  Don't go crazy on storage cost.

Best of luck

Cory

gt350hr

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Re: Selling your Shelby and the IRS
« Reply #2 on: December 03, 2019, 12:24:47 PM »
You are going to tell them?
Celebrating 46 years of drag racing 6S477 and no end in sight.

Bob Gaines

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Re: Selling your Shelby and the IRS
« Reply #3 on: December 03, 2019, 12:28:30 PM »
Make sure you have enough expenses, such as storage and maintenance to offset any gains.  Don't go crazy on storage cost.

Best of luck

Cory
Unfortunately the IRS will not typically take your labor for maintenance into consideration just parts. Receipts of others working on your car are honored however.
Bob Gaines,Shelby Enthusiast, Shelby Collector , Shelby Concours judge SAAC,MCA,Mid America Shelby

mac

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Re: Selling your Shelby and the IRS
« Reply #4 on: December 03, 2019, 01:26:11 PM »
Not a problem I will likely ever have, but also not a problem I would want to discuss on a public forum.

Don Johnston

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Re: Selling your Shelby and the IRS
« Reply #5 on: December 03, 2019, 01:34:21 PM »
Not a problem I will likely ever have, but also not a problem I would want to discuss on a public forum.
You could discuss in the members only forum.  But this is a good topic of concern to some of us.

67 GT350

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Re: Selling your Shelby and the IRS
« Reply #6 on: December 03, 2019, 01:49:12 PM »
Many people probably have not kept a lot of receipts. Ebay might be another problem with tax, because how many sellers who are real people that just put something on that has been in the house for years, say a vase, it might have been given to them or they bought it years ago, they don't have anything that say what their "cost" is, then they sell it.....does that mean the pay tax on what it sold for? Seems like a bad thing anymore to ty to get rid of something.
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tesgt350

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Re: Selling your Shelby and the IRS
« Reply #7 on: December 03, 2019, 02:05:32 PM »
You are going to tell them?

 No way.  Just wondering because I see them selling for big Money and just wondering what your LOSS would be due to the IRS taking their share.  If it is worth $350,000 and you have no Leans on it because you owned for many Years, you decide to sell it now because the Prices are "Right", how much could the IRS take of that?   

CharlesTurner

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Re: Selling your Shelby and the IRS
« Reply #8 on: December 03, 2019, 02:10:53 PM »
https://www.irs.gov/taxtopics/tc409

How much you pay depends on length of ownership.  Legit expenses are deducted from the difference between what was paid and what it was sold for.

Best to consult a tax professional to understand best for your personal situation.
Charles Turner
MCA/SAAC Judge

6s1640

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Re: Selling your Shelby and the IRS
« Reply #9 on: December 03, 2019, 02:32:22 PM »
Just curious about this...… If you sell your Shelby for $350,000 in CASH, what do you do to keep the IRS from taking a huge chunk of that?

There is  also a problem with that much cash.  If you go to deposit more than $10,000, the receiving institution has to fill out a IRS form and they are notified of this deposit.  A deposit of $350,000 will get their attention and you will get a visit from the IRS.  The below quote if from a Google search:

"When do banks report deposits to IRS? Banks and credit unions are required to report a cash deposit of $10,000 or larger. In addition, if two transactions within a 12-month period seem related and their total exceeds $10,000 they must be reported."

I found this out when buying a late model car with cash.

Cory
« Last Edit: December 03, 2019, 03:17:23 PM by 6s1640 »

gt350hr

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Re: Selling your Shelby and the IRS
« Reply #10 on: December 03, 2019, 03:02:32 PM »
  That's only 70 $5,000 postal money orders ;)  Consulting a tax professional as Charles suggested paramount. Money can be "rolled" into other "investments" to avoid "the big bite". If you deposit the money blindly , the IRS looks at it the same way as winning the lottery and eats up 40% or more. One legal way is starting a corporation , but again a tax expert should be involved. Their fees are a mere pittance to the potential the IRS "could get". I have a friend in a similar situation on the sale of a high six figure car. He paid six figures but less than what he sold it for so there is a "capital gain".
    Randy
Celebrating 46 years of drag racing 6S477 and no end in sight.

Bossbill

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Re: Selling your Shelby and the IRS
« Reply #11 on: December 03, 2019, 03:26:43 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.
Bill

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Hockeylife

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Re: Selling your Shelby and the IRS
« Reply #12 on: December 03, 2019, 04:23:42 PM »
Not sure how many people pay cash for a 6 figure car, but if they do and deposit to any financial institution there will be a report filed by that institution to the government. This only applies to cash. Wires, checks, etc do not trigger this report. If you report the sale on your 1040 the increase in value over your original cost plus expenses is considered a “capital gain” taxed at current rates of either 15 or 20% pending your tax bracket.

gt350hr

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Re: Selling your Shelby and the IRS
« Reply #13 on: December 03, 2019, 04:44:50 PM »
   I was under the impression that checks over $10,000 were reported too. I could certainly be misinformed.
Celebrating 46 years of drag racing 6S477 and no end in sight.

2112

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Re: Selling your Shelby and the IRS
« Reply #14 on: December 03, 2019, 04:56:49 PM »
If Personal cars are subject to capital gains, we get to write off all the depreciation we suffer on all our other possessions, right?

 ::)