Capital Gains on muscle car (state of PA)

[mockingbird812]

Thanks for info so far guys. Any ideas what the relevance in referring to the car as "antique" by the accountant?

[chads454Ls6]

No idea. I have claimed every penny I have ever made,as painful as that was,and my Cpa has always filed it between 15-25% depending on how long i owned the car so like I said unless they have changed something,that is how i have paid in the past.

[x Baldwin Motion]

[ QUOTE ]
.....I have claimed every penny I have ever made,as painful as that was..........

[/ QUOTE ]

Normally I would say it is time for a new accountant after reading a statement like that, but since the IRS is watching us and reading all our posts I'll say "me too, and thanks for being a good taxpayer"

[67rscoupe]

[ QUOTE ]
No idea. I have claimed every penny I have ever made,as painful as that was,and my Cpa has always filed it between 15-25% depending on how long i owned the car so like I said unless they have changed something,that is how i have paid in the past.

[/ QUOTE ]

i dont think the above posts is entirely true.there is alot more to it.

[mockingbird812]

I'm listening (picture a guy eating popcorn sitting on the edge of his seat)

[Bill Pritchard]

Sam,

I'm having a tough time with all this. Unless this was a really high dollar value muscle car (nearing or into 6 figures), I doubt that the IRS would pay any attention, especially if there were no 1099's involved. Many, many vehicles these days sell in the $30K - $50K range so it hardly raises an eyebrow. Who's going to ask how long they've owned the car or how much they have invested in it?

[427king]

[ QUOTE ]
Many, many vehicles these days sell in the $30K - $50K range so it hardly raises an eyebrow. Who's going to ask how long they've owned the car or how much they have invested in it?


[/ QUOTE ] Im pretty sure the IRS is very concerned about unreported 50K transactions,as well as the 100K ones .

[mockingbird812]

Bill,

First of all, I haven't seen you lately at the Pavillions. Just a reminder, but this is one of the reasons u moved from that tuff winter clime. Come on down!

As to your comment, I hear you. But, I am asking for a friend as this is the direction she has been advised to head.


See u in Scottsdale...

[YENKO DEUCE REGISTRY]

[ QUOTE ]
Sam,

I'm having a tough time with all this. Unless this was a really high dollar value muscle car (nearing or into 6 figures), I doubt that the IRS would pay any attention, especially if there were no 1099's involved. Many, many vehicles these days sell in the $30K - $50K range so it hardly raises an eyebrow. Who's going to ask how long they've owned the car or how much they have invested in it?

[/ QUOTE ]

I'll quote myself from an earlier post: tax planning is encouraged, tax avoidance is unlawful. Just bec/ you don't think you'll get caught, doesn't make it right. I'm not sure if a situation like this constitutes fraud, but if so, keep in mind that there is no statute of limitations on fraud. So, that '7 year window' that everyone thinks they have - is not not 7 years!

The best tax advice I gave to a fellow sYc member was to simply determine your price, calc the cap gain tax, and add that amount to your price. There are some netting down / grossing up calculations in there, but it's the best way to get your number & still pay your taxes.

BTW, 67rs, if there's more to this discussion than we've covered, by all means enlighten us.

[NovaMob03]

So, what happens if you lose money on a classic car? Can you write off the loss?