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?
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
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.
And it's the prototype/show car. I suggest you never sell, Brad, as it would be too expensive! (not that you would anyway...)
If your over 65 you get 1 capital gain tax eliminated . It work for selling a house . But its only 1 in your lifetime
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
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.
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.