Scottsdale BJ auction - NCRS Discussion Boards

Scottsdale BJ auction

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  • Michael J.
    Extremely Frequent Poster
    • January 27, 2009
    • 7122

    #16
    Re: Scottsdale BJ auction

    Originally posted by Duke Williams (22045)
    It appears that it comes down to whether or not a vintage Corvette is considered an "antique".

    Does anyone have any direct experience with the capital gains rate on vintage cars?

    Duke
    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….
    Last edited by Michael J.; December 25, 2013, 12:56 PM. Reason: Add section
    Big Tanks In the High Mountains of New Mexico

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    • Dan D.
      Very Frequent User
      • September 5, 2013
      • 181

      #17
      Re: Scottsdale BJ auction

      Has anyone considered a 1031 Equity Exchange. We use it for real estate but it can also be used for personal property. If you look at the regulations, they're vague enough so it wouldn't necessarily have to be another car; as long as you can establish that the replacement property is personal property and is being held for investment, it should fly. --- just a thought.

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      • Michael J.
        Extremely Frequent Poster
        • January 27, 2009
        • 7122

        #18
        Re: Scottsdale BJ auction

        I think that could also work alright.
        Big Tanks In the High Mountains of New Mexico

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