[DeTomaso] NPC- Taxes on classic cars?

Erik Kolstoe ekolstoe at gmail.com
Wed Mar 16 20:12:39 EDT 2022


Sportscar Market Magazine had a great write up on this very topic in their
"Legal Files" section.

It can be found here:
https://www.sportscarmarket.com/columns/legal-files/tax-landscape-for-collectors

Hope this helps.

Erik

On Wed, Mar 16, 2022 at 9:20 AM Mike & Elizabeth <mbefthomas2 at gmail.com>
wrote:

> 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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>
> _______________________________________________
>
>
> Detomaso Email List is not managed by POCA
> Posted emails must not exceed 1.5 Megabytes
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> They also grant the list owner permission to maintain an archive or approve
> the archiving of list messages.
>
-------------- next part --------------
   Sportscar Market Magazine had a great write up on this very topic in
   their "Legal Files" section.
   It can be found here:
   [1]https://www.sportscarmarket.com/columns/legal-files/tax-landscape-fo
   r-collectors
   Hope this helps.
   Erik

   On Wed, Mar 16, 2022 at 9:20 AM Mike & Elizabeth
   <[2]mbefthomas2 at gmail.com> wrote:

     Thanks Richard.A  We can only hope that our cars would break that
     threshold.A  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 <[3]detomaso-bounces at server.detomasolist.com> On
     Behalf Of opiecars--- via DeTomaso
     Sent: Wednesday, March 16, 2022 8:14 AM
     To: Matt <[4]nwpantera at gmail.com>; Gray Gregory
     <[5]rgg at gregorycook.com>
     Cc: [6]detomaso at server.detomasolist.com
     Subject: Re: [DeTomaso] NPC- Taxes on classic cars?
     A 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.
     [7]https://www.jdsupra.com/legalnews/washington-state-capital-gains-
     tax-2935144/
     Richard O.
     A  A  On Wednesday, March 16, 2022, 04:29:40 AM PDT, Gray Gregory
     <[8]rgg at gregorycook.com> wrote:A
     A 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 <[9]detomaso-bounces at server.detomasolist.com> On
     Behalf Of Matt
     Sent: Tuesday, March 15, 2022 6:19 PM
     To: DeTomaso Mail List <[10]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
     [11]DeTomaso at server.detomasolist.com
     [12]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.
     _______________________________________________
     Detomaso Email List is not managed by POCA
     Posted emails must not exceed 1.5 Megabytes
     DeTomaso mailing list
     [13]DeTomaso at server.detomasolist.com
     [14]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.sportscarmarket.com/columns/legal-files/tax-landscape-for-collectors
   2. mailto:mbefthomas2 at gmail.com
   3. mailto:detomaso-bounces at server.detomasolist.com
   4. mailto:nwpantera at gmail.com
   5. mailto:rgg at gregorycook.com
   6. mailto:detomaso at server.detomasolist.com
   7. https://www.jdsupra.com/legalnews/washington-state-capital-gains-tax-2935144/
   8. mailto:rgg at gregorycook.com
   9. mailto:detomaso-bounces at server.detomasolist.com
  10. mailto:detomaso at server.detomasolist.com
  11. mailto:DeTomaso at server.detomasolist.com
  12. http://server.detomasolist.com/mailman/listinfo/detomaso
  13. mailto:DeTomaso at server.detomasolist.com
  14. http://server.detomasolist.com/mailman/listinfo/detomaso


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