Re: Scottsdale BJ auction
I wish! I have only sold one car in my life at a profit, and I didn't report it…Oops…but my accountant told me it was not necessary as I could adjust the tax basis on the car by all the restoration work I did on it. But, my CPA son and wife, tell me cars are treated as personal capital assets, and are governed under this publication:
If you go to Page 27, this section would govern cars too….and it says: "Gold, silver, gems, stamps, coins, etc., are capital assets except when they are held for sale bya dealer. Any gain or loss from their sale or ex-change generally is a capital gain or loss. If youare a dealer, the amount received from the saleis ordinary business income."
Also Page 22 Defines Capital Assets: "Capital Assets Almost everything you own and use for per-sonal purposes, pleasure, or investment is acapital asset. For exceptions, see NoncapitalAssets, later.
The following items are examples of capitalassets.
Stocks and bonds.
A home owned and occupied by you andyour family.
Timber grown on your home property or in-vestment property, even if you make cas-ual sales of the timber.
Household furnishings.
A car used for pleasure or commuting.Coin or stamp collections.
Gems and jewelry.
Gold, silver, and other metals.
Personal-use property. Generally, propertyheld for personal use is a capital asset. Gainfrom a sale or exchange of that property is acapital gain. Loss from the sale or exchange ofthat property is not deductible. You can deduct a loss relating to personal-use property only if itresults from a casualty or theft. "
And of course the other interesting thing is that a loss on the sale of a car can't be deducted as a capital loss, so they got you both ways….
I wish! I have only sold one car in my life at a profit, and I didn't report it…Oops…but my accountant told me it was not necessary as I could adjust the tax basis on the car by all the restoration work I did on it. But, my CPA son and wife, tell me cars are treated as personal capital assets, and are governed under this publication:
If you go to Page 27, this section would govern cars too….and it says: "Gold, silver, gems, stamps, coins, etc., are capital assets except when they are held for sale bya dealer. Any gain or loss from their sale or ex-change generally is a capital gain or loss. If youare a dealer, the amount received from the saleis ordinary business income."
Also Page 22 Defines Capital Assets: "Capital Assets Almost everything you own and use for per-sonal purposes, pleasure, or investment is acapital asset. For exceptions, see NoncapitalAssets, later.
The following items are examples of capitalassets.
Stocks and bonds.
A home owned and occupied by you andyour family.
Timber grown on your home property or in-vestment property, even if you make cas-ual sales of the timber.
Household furnishings.
A car used for pleasure or commuting.Coin or stamp collections.
Gems and jewelry.
Gold, silver, and other metals.
Personal-use property. Generally, propertyheld for personal use is a capital asset. Gainfrom a sale or exchange of that property is acapital gain. Loss from the sale or exchange ofthat property is not deductible. You can deduct a loss relating to personal-use property only if itresults from a casualty or theft. "
And of course the other interesting thing is that a loss on the sale of a car can't be deducted as a capital loss, so they got you both ways….
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