No one can prove or disprove what has been invested in the car over time. Period. Just sell the car, put the money in the bank and be done. What about these people that restore cars found in fields. They don't really "make" money on them. But a selling price would be much higher than the buying price to start with. If you look at it strictly as income. With 23 years worth of storage, maintenance, insurance, ect. You didn't "make" any money.
It is now at $3500.00. Any more than that, unless you know people in the bank you go to all the time on a regular basis, are required to fill out an "SAR", "Suspicious Activity Report". I know it's a PIA, but you need to do this on installments spread out over time. In your case this may take a year or more.
deposit a little over time as said above. you could also list the price lower on the title when selling and make sure to collect as many bills from auto parts stores and such as possible and keep them just in case around 5 years. jim
You can set up a [FONT=Arial, Helvetica, Verdana, sans-serif]Charitable Remainder Trusts ([/FONT]CRT) here's some info for you,, it may not be the vehicle for you but an option.. [FONT=Arial, Helvetica, Verdana, sans-serif]Charitable Remainder Trusts do not pay any capital gains taxes,[/FONT][FONT=Arial, Helvetica, Verdana, sans-serif] because their assets are destined for a charity, [/FONT][FONT=Arial, Helvetica, Verdana, sans-serif]These taxes can range from 10% to 20% of an asset's growth in value. For this reason, CRTs are ideal for assets like stocks or property with a low cost basis but high appreciated value. [/FONT] [FONT=Arial, Helvetica, Verdana, sans-serif]For instance, suppose you sell one of your rental properties for $1 million. Let's assume you originally paid $100,000 for the property. Upon completion of the sale, you would owe capital gains taxes on the $900,000 difference. That tax could easily top $150,000, depending on how long you owned the property and your overall tax situation. [/FONT] [FONT=Arial, Helvetica, Verdana, sans-serif]Funding a CRT with highly-appreciated assets (like real estate) allows you to sell those assets without paying any capital gains taxes. Since CRTs have a charitable intent and do not have to pay capital gains, the full value of any assets transfers to the trust (and thus, to your family and favorite charity).[/FONT]
Yeah I did the same thing when I sold a Taurus a couple yrs ago. Deposited the check, no questions. Also when I sold my house I deposited quite a substantial sum, again no questions asked. well except for the bank teller that leaned forward and whispered..."Sir you have considerable funds in your bank account, I suggest we move it another type of account where it can make you some money" My reply was... "Ma'am...Its not going to be there for that long" as that same week I was writing a check for the new house. Moral of the story, no one questioned the deposit and I didn't fill out any paperwork. (Didn't pay gains tax on it either as I lived in the house for more than 5 yrs.)
For large amounts of money,establish a foundation. This is what the elite rich use and avoid paying taxes. Most attornies can set one up. I wouldn't report something like a car sale. It is just a car. It's not like you are in business selling cars or something. You can sell your car for whatever amount you can get for it. It's none of the IRS business anyways. They are only legally allowed to tax federal government employees anyways, through the Buck Act. Why would you want to give some of your car sale money to the United Nations/IMF anyways? God, they have people brainwashed scared in this country.ou: The IMF is the agency that administers the IRS here,along with Social Security. Sell your car and don't worry about it!
Forget incorporating or starting a foundation. It's a car. I have sold lots of cars, some cheap and some that put a few bucks in my pocket. Sell the car and enjoy do what you want with the money.
Thanks for all the great responses, well I don't plan on giving the car to my son, one reason I may sell it is to pay for his college....Not sure what I will tell the younger child though I guess the best way is to just deposit the money a little at a time, and yes after 23 years I could not even begin to count the money I have invested in body work, engine work and all the other things that go along with owning one of these cars... Its a shame that I would have to pay capital gains on something that I put so much time and effort into, and all the government does is stand there with their hand out saying PAY ME-ITS THE LAW! Anybody have change for a 10K spot? thanks everyone Nick
For a car I always keep all my recipts. I will have close to 40K in recipts when the Suncoupe is done. I will not make money as most car owners don't even if they sell for a lot. I would pay only if my attorney tells me to.
Forget capital gains! sell it to me cheap and take a loss. It would be just like the stock market. Good luck. Don't deposit a large amount of cash all at one time!
The problem comes when you take a cheque. If you can get the cheque cashed, at something like a Money Mart, or something like that, (they cost a few bucks, but never ask questions) and then open up a whole bunch of bank accounts with small amounts in them. No one is going to go through the hassle of running down all those accounts. They only did it to Madoff once he shafted people. Get the guy to pay in hard cash, and let him worry about the banks and such. I can't believe they charge capital gains on a car! Nice to see that the government is looking out for everyone's interests, a guy can't even sell a car that he's been paying taxes on in one form or another without them getting their share! Your Founding Fathers would be rolling over in their graves; - definitely "taxation without representation".
i would not worry. just find all the car receipts you can and save them. they will only ask for them if they are interested. do you think they know a buick 455 stage 1 or a 350 stage 1 or a nailhead. hell no. just bring them a box with all kind of car receipts before you sell date. hell i am sure we can send you some. jim
Wow Capital gains on a car. Thats a new topic I have never seen discussed but is an interesting one because that thought briefly crossed my mind when I sold my 67 Riv GS. We are blessed to have this problem with some Buicks. :beer Shhhh! Do not let Obama know, this could be a source for the taxes needed for nationalized healthcare. :bla: I would never ever ever consider reporting the income from the sale of a car. I have never heard of a private individual getting busted for not reporting it so whether you are supposed to or not doesn't matter. Its just not necessary. Unless you are selling cars as a business where you do several cars a year or more, you have nothing to worry about.
I find it interesting that this is now a topic of discission again. When I was doing financial planning a large number of my clients had collector cars. To that end they added to the net worth calculations as an appreciating asset, like a stock or bond, and as such that was a plus. They can also be used for securing a loan because they have an appraised value that a bank, credit union, etc. may be willing to loan against. What I recommended to my clients was for them to have the vehicle in question appraised, have it properly insured (agreed value) and then discuss the situation with their tax professional. CPA's, CFP's, Tax Attorneys are all familiar with the rules that apply to capital gains and losses. Most will see a collector car in the same segment as a collection of stamps, watches, or other collectibles. What ever you do, make sure you are consistant in the treatment or the asset from year to year.
Capital Gains is the issue, depositing a cheque for any amount isn't a problem, cash over 10k is. When you deposit more than 10k the questions are asked. I sold a boat once and the guy paid me 22k in cash. I told him I required a draft or certified cheque. His responce was do you wanthe money or not, yah he was a drug dealer/grower. I took the money, went to the bank and deposited it. When asked the questions I ansewered honestly and then asked if there was a problem and the responce was , no, we just need to know were it came from. Now I have checked a few of the tax laws, some vary from state to state but it seams that capital gains on a privetly owned vehical is not appicable. You can't write off your loss so they can't tax the gain, taxation without represntation, I belive that is part of your consitution. You can write off opperating exspences and deprisiation in certian circumstances. If you sell the car for more than your declared deprisation the difference is concidered recoupable to the goverment. Now unless you have used your car for business or other tax purposes sell it put the draft or certified cheque in the bank and use it to fix up the house or for your 401k or some other tax deductable methood. And if you did use it for business pay the recoupable balance and then carry on. The only other thing is to provide the purchaser a bill of sale for the correct amount he or she paid and have them sign it. That way if they want to avoid paying less tax when they go to register it and fudge the amount of the purchase price, the tax man woun't be coming to you to charge you with conspericy to defraud. So I hope that these facts helped you out, now do you really want to sell your car in the first place??? Ross BA. Bus&Com, CFP,CLU
Pay the taxes. About the only way you can avoid the taxes (temporarily, defering them to the future) is to do a 1031 Exchange. This is where you replace the car with another car, using the proceeds of the sale from the first car to finance the second car within a reasonable abount of time. I'm not sure your car is going to qualify for that though, as this rule only applies to investments. An investment, for purposes of this rule, generally means real estate, a business, stocks, or other things originally intended to make money. I'm not really sure any car used for personal use would qualify. Just because something appreciates over time and even though you originally bought it with the intent to sell if for a profit later on, doesn't mean it qualifies as an investment in the eyes of the IRS. Now, if you had traded the car for another car and no cash was involved, then that's another thing . . .
Someone in the government said that it "is patriotic to pay taxes". The more taxes you pay,the more patriotic you are Just give them all of your money and maybe they will let you keep a small amount out of the goodness of their hearts. Then you can feel patriotic ,warm and fuzzy all over. Plus it will give them more money to piss away for nothing.
