[DeTomaso] NPC- Taxes on classic cars?

[Mike & Elizabeth]

Thanks Richard.  We can only hope that our cars would break that threshold.  I almost, that's ALMOST, be happy to pay a cap gains tax if that were the case.
Mike Thomas
Panteras Northwest

-----Original Message-----
From: DeTomaso <detomaso-bounces at server.detomasolist.com> On Behalf Of opiecars--- via DeTomaso
Sent: Wednesday, March 16, 2022 8:14 AM
To: Matt <nwpantera at gmail.com>; Gray Gregory <rgg at gregorycook.com>
Cc: detomaso at server.detomasolist.com
Subject: Re: [DeTomaso] NPC- Taxes on classic cars?

 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
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