Capital Gains tax

Discussion in 'The Bench' started by gstewart, May 22, 2019.

  1. gstewart

    gstewart Well-Known Member

    If u purchased, for example, a real 1970 GSX for $10000 twenty years ago and u sold it today for $75000, do u pay capital gains? Ever?
     
  2. UticaGeoff

    UticaGeoff Well-Known Member

    I am not an accountant, but I believe you do. The $65,000 in your example could be offset somewhat by costs/expenses incurred to maintain the "collectible".

    UticaGeoff
     
    nickbuickgs likes this.
  3. 71GSX

    71GSX Well-Known Member

    I was advised that yes you should. It will be interesting to see what others say.
     
  4. johnriv67

    johnriv67 Well-Known Member

    Exactly, you have to have a record of your receipts and everything to be able to claim immunity (or at least not be taxed on the basis of $65,000) from the gains by providing the tax authority with "proof" that it wasn't so much a gain as $65,000 due to what you paid over that twenty years with the car.
     
  5. 1970gsx

    1970gsx Well-Known Member

    What if you bought it for $2700 35 years ago? :)
     
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  6. johnriv67

    johnriv67 Well-Known Member

    A Capital Gain is a Capital Gain, although the tax rate may depend on what state you are in.
     
  7. 71GSX

    71GSX Well-Known Member

    Or 48 years ago for $1500.00. Lol
     
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  8. Brad Conley

    Brad Conley RIP Staff Member

    Or 41 years ago for $1850......
     
    71GSX, STAGE III, GSST1 and 3 others like this.
  9. racenu

    racenu Well-Known Member

    if you get a cheque for 10k and the rest in cash, no capital gains.
     
    STAGE III, Smokey15, bw1339 and 2 others like this.
  10. gstewart

    gstewart Well-Known Member

    Ah, the old cash deal!! Love it.
     
  11. 71GSX455-4SPD

    71GSX455-4SPD Nick Serwo Magic Car

    And it's the prototype/show car.

    I suggest you never sell, Brad, as it would be too expensive! (not that you would anyway...)
     
  12. GSX 554

    GSX 554 Gold Level Contributor

    If your over 65 you get 1 capital gain tax eliminated . It work for selling a house . But its only 1 in your lifetime
     
    71GSX likes this.
  13. Brad Conley

    Brad Conley RIP Staff Member

    3 1/2 years and counting!
     
  14. Brad Conley

    Brad Conley RIP Staff Member

    I've always said the capital gains would kill me!
     
  15. moleary

    moleary GOD Bless America

    Brad, it would hurt me more thank you but you could just gift the prototype X to me and I’d deal with the hassle from the tax man
     
    1972Mach1 and Brad Conley like this.
  16. cjp69

    cjp69 Gold Level Contributor

    You would be paying a lot of taxes on that gift.........
     
  17. gs66

    gs66 Silver Level contributor

    We can always sell for a loss to avoid that! Won’t be hard for me. Seriously, most sales around here are for cash only.
     
  18. pbr400

    pbr400 68GS400

    Sell it for cash. What the government doesn’t know won’t hurt them.
    Patrick
     
    Smokey15 likes this.
  19. Briz

    Briz Founders Club Member

    Made a bundle on the last house I sold. Had the tax figured and then donated that amount to my church and claimed it as a charitable deduction. I actually got a refund that year.
     
    techg8, 71GSX and GSST1 like this.
  20. dynaflow

    dynaflow shiftless...

    ...unless they track it from buyer's side...
     

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