[DeTomaso] NPC- Taxes on classic cars?

[opiecars at yahoo.com]

 Matt,
Short story - Washington State does not have currently have capital gains tax.
Long story - The legislature recently passed a bill approving it, which a judge overruled. Further litigation is anticipated. Even if the tax goes into effect there is a $250k threshold before the tax is applied.
See this article.
https://www.jdsupra.com/legalnews/washington-state-capital-gains-tax-2935144/

Richard O.
    On Wednesday, March 16, 2022, 04:29:40 AM PDT, Gray Gregory <rgg at gregorycook.com> wrote:  
 
 Matt,

Your tax person is correct. Any profit made on the sale will be subject to federal capital gains tax. As for Washington state I know nothing about the states tax laws but any state law would only apply to state taxes owed not federal tax.

Gray

-----Original Message-----
From: DeTomaso <detomaso-bounces at server.detomasolist.com> On Behalf Of Matt
Sent: Tuesday, March 15, 2022 6:19 PM
To: DeTomaso Mail List <detomaso at server.detomasolist.com>
Subject: [DeTomaso] NPC- Taxes on classic cars?

I'm all googled out trying to get an answer on this.
Perhaps some of you might know.
While talking to my tax person the subject of classic car sales came up.
I asked her if I was to sell my 72 would I have to pay capital gains tax on the profits?
She basically said yes I would but if I had receipts on any work done that would be deducted from the total profit between what I paid for it and what it was sold for.
Fair enough.

But then as I was searching for more info as it relates to the state I live in and where the car is registered (Washington state) I ran across something.
Some of the articles that popped up mentioned that a classic car made prior to 1973 would be exempt from any sales tax or capitol gains income! What?
It would be viewed as a "wasting asset" alluding that any car over 50 years old has reached the end of it's useful life or something to that effect.
This was news to me and I am having a hard time verifying that it actually is applicable in WA state or any other state for that matter.

Does anyone have any knowledge or experience to share about the subject?
Thanks, Matt
_______________________________________________


Detomaso Email List is not managed by POCA
Posted emails must not exceed 1.5 Megabytes
DeTomaso mailing list
DeTomaso at server.detomasolist.com
http://server.detomasolist.com/mailman/listinfo/detomaso

To manage your subscription (change email address, unsubscribe, etc.) use the links above.

Members who post to this list grant license to the list to forward any message posted here to all past, current, or future members of the list. They also grant the list owner permission to maintain an archive or approve the archiving of list messages.
  
-------------- next part --------------
   Matt,
   Short story - Washington State does not have currently have capital
   gains tax.
   Long story - The legislature recently passed a bill approving it, which
   a judge overruled. Further litigation is anticipated. Even if the tax
   goes into effect there is a $250k threshold before the tax is applied.
   See this article.
   [1]https://www.jdsupra.com/legalnews/washington-state-capital-gains-tax
   -2935144/
   Richard O.

   On Wednesday, March 16, 2022, 04:29:40 AM PDT, Gray Gregory
   <rgg at gregorycook.com> wrote:
   Matt,
   Your tax person is correct. Any profit made on the sale will be subject
   to federal capital gains tax. As for Washington state I know nothing
   about the states tax laws but any state law would only apply to state
   taxes owed not federal tax.
   Gray
   -----Original Message-----
   From: DeTomaso <[2]detomaso-bounces at server.detomasolist.com> On Behalf
   Of Matt
   Sent: Tuesday, March 15, 2022 6:19 PM
   To: DeTomaso Mail List <[3]detomaso at server.detomasolist.com>
   Subject: [DeTomaso] NPC- Taxes on classic cars?
   I'm all googled out trying to get an answer on this.
   Perhaps some of you might know.
   While talking to my tax person the subject of classic car sales came
   up.
   I asked her if I was to sell my 72 would I have to pay capital gains
   tax on the profits?
   She basically said yes I would but if I had receipts on any work done
   that would be deducted from the total profit between what I paid for it
   and what it was sold for.
   Fair enough.
   But then as I was searching for more info as it relates to the state I
   live in and where the car is registered (Washington state) I ran across
   something.
   Some of the articles that popped up mentioned that a classic car made
   prior to 1973 would be exempt from any sales tax or capitol gains
   income! What?
   It would be viewed as a "wasting asset" alluding that any car over 50
   years old has reached the end of it's useful life or something to that
   effect.
   This was news to me and I am having a hard time verifying that it
   actually is applicable in WA state or any other state for that matter.
   Does anyone have any knowledge or experience to share about the
   subject?
   Thanks, Matt
   _______________________________________________
   Detomaso Email List is not managed by POCA
   Posted emails must not exceed 1.5 Megabytes
   DeTomaso mailing list
   [4]DeTomaso at server.detomasolist.com
   [5]http://server.detomasolist.com/mailman/listinfo/detomaso
   To manage your subscription (change email address, unsubscribe, etc.)
   use the links above.
   Members who post to this list grant license to the list to forward any
   message posted here to all past, current, or future members of the
   list. They also grant the list owner permission to maintain an archive
   or approve the archiving of list messages.

References

   1. https://www.jdsupra.com/legalnews/washington-state-capital-gains-tax-2935144/
   2. mailto:detomaso-bounces at server.detomasolist.com
   3. mailto:detomaso at server.detomasolist.com
   4. mailto:DeTomaso at server.detomasolist.com
   5. http://server.detomasolist.com/mailman/listinfo/detomaso