Capital Gains on muscle car (state of PA)

[nuch_ss396]

I believe muscle car investments took the place of real estate
investments. If you purchase & keep a house more than two
years, you don't have to pay capital gains tax on it.
Automobiles should be exactly the same situation. Leave it
to the bleep-ing government to find a way to take more
money out of our pockets.

Now this is going to move into a politically toned topic soon.
Nuch

[YENKO DEUCE REGISTRY]

[ QUOTE ]
I believe muscle car investments took the place of real estate
investments. If you purchase & keep a house more than two
years, you don't have to pay capital gains tax on it.
Automobiles should be exactly the same situation. Leave it
to the bleep-ing government to find a way to take more
money out of our pockets.

Now this is going to move into a politically toned topic soon.
Nuch

[/ QUOTE ]

Please disregard the tax information contained in the post quoted from above.

Tax info can be difficult enough without including real estate tax considerations into the equation. Let's stick to cars as capital assets, and what the applicable rate would be.

Back on topic, the 28% statement in the first post rings of Partnership Interest accounting which has a 28% rate gain for 'collectibles'. I'll look it up this afternoon, but I believe the 15% rate is the one to use.

[AutoInsane]

There is a great article on this topic in the October 2007 issue of Sports Car Market. Here is a link but you must be a SCM Platinum Subscriber to access it.

http://www.sportscarmarket.com/Legal...2007/October//

Perhaps someone has the magazing sitting around and can elaborate on what was said in the article.

[mockingbird812]

Or maybe someone could scan it?!

[427king]

[ QUOTE ]
If you purchase & keep a house more than two
years, you don't have to pay capital gains tax on it.

[/ QUOTE ] The point you are omitting though is that it has to be the home you live in 100% of the time .Not rental, second home,investment property,or vacation home etc etc...You guys really need to look into buying cars,collectibles,investment property,rental property,vacation homes with your retirement accounts,its a little involved but it sure beats having your retirement in a cd at 1.7%,or invested in failing banks and the like and there are no penalties for switching over,the restrictions are a bit overwelming but worth it in alot of cases.

[rubbinisracing]

Marlin,

What does the IRC say about the current 15% rate if you have no earned income in the same tax year as the capital gain? Does it fall to 5%?

[YENKO DEUCE REGISTRY]

[ QUOTE ]
[ QUOTE ]
If you purchase & keep a house more than two
years, you don't have to pay capital gains tax on it.

[/ QUOTE ] The point you are omitting though is that it has to be the home you live in 100% of the time .Not rental, second home,investment property,or vacation home etc etc...You guys really need to look into buying cars,collectibles,investment property,rental property,vacation homes with your retirement accounts,its a little involved but it sure beats having your retirement in a cd at 1.7%,or invested in failing banks and the like and there are no penalties for switching over,the restrictions are a bit overwelming but worth it in alot of cases.

[/ QUOTE ]

I also would not take that statement to the bank, as I believe only the first $250k ($500k MFJ) is tax free, they may have changed this recently though. Keep in mind that the AMT (alternative minimum tax) rules are kicking in for a lot of folks now, so certain tax breaks begin eroding rather quickly with the AMT.

Kendall, I believe the cap gain would put you into a the lowest tax bracket - which I think is 10% now.

Now I know why I don't do tax work - this stuff will drive you nutz! I'll stick to publicly held corp. SEC type work.

[Jeff Murphy]

Just FYI, there are some drastic tax code changes here in the UK so I had a discussion with my tax accountants about whether or not I should be changing my domicile and other status. I learned that there is no capital gains tax on automobiles in the UK! This is the only good news I've had in weeks....