Transfer of Large Amounts of Funds?

[YENKO DEUCE REGISTRY]

So, any U.S. tax experts have any input on whether the sale of an old car is treated as an investment subjected to cap.gains tax rates, or is it misc. income subjected to income tax rates? (Jim Hughes maybe )

[Mr70]

We need an experienced savy bean counter to log on.

[YENKO DEUCE REGISTRY]

duplicate.

[YENKO DEUCE REGISTRY]

Nah, just somebody who has experience in taxes. There is no requirement to have any accounting experience to prepare tax returns - that's the gov for ya! Most accountants hate taxes, me included

[k92]

If you buy the car for less than you sell it for the profit is subject to capital gains tax. I was also told that if you restore it over lets say a 5 year period and sell it the fifth year you can only write off the expenses that you incurred in the year that you sold it,not what you spent on it the previous 4 years...

[YENKO DEUCE REGISTRY]

[TXSS]

My suggestion is to do what I did. If you are buying, selling and/or restoring a number of cars every year, spend 500.00 and set up an "S" Corporation. That gives you the means to track ALL your expenses associated with your car dealings from your labor to health insurance. Any profits made on the cars are taxed at your standard personal tax rate. Per the US tax code you can virtually live out of an S Corp legally, plus currently only about 1.3% of S Corps are audited. However, S Corps are such a sweet deal compared to Cap. gains tax you don't need to cheat, I know I don't. Really I don't.

Also, transfers of large amounts of cash in an S Corp is a non-issue if you are not involved in illegal activities. Plus with a wire trans you can see where the money went. With a cashiers check once it's in the mail it can go anywhere in the world. It's much easier to track down a bad egg if you have his bank account number

Rick

[69LM1]

S Corp is Good Advice, even if you only do one or two cars a year. Also, car shows, swap meets and most of the associated expenses become business expenses.

Rich