[DeTomaso] NPC- Taxes on classic cars?
Matt
nwpantera at gmail.com
Wed Mar 16 22:16:16 EDT 2022
Thanks to all for chiming in on the fun subject of taxation!
Thank you for the link Erik although that was from 2018 and tax laws seem
to change with each administration.
In my original post I mentioned "wasting assets" and cars older than 50
years being exempt from capital gains tax.
Turns out this only applies in the U.K. as a result of the "Taxation of
Chargeable Gains Act 1992 (TCGA 1992 Sect 44).
It applies to plants and machinery only from what I could decipher from the
legal mumbo jumbo. I've been wrong before.
Maybe our British brethren can comment further on this!
After talking to a family member who has bought and sold a lot of collector
cars he assured me they will not be knocking on my door.
He never declares any profit to the IRS and moves money around in his bank
account all the time. Maybe he's just lucky but I've never heard of anybody
being audited for a car sale.
The exception is if you run a business or it's your only source of income.
I believe now that unless there is specific documentation available which
ties your S.S. # or tax id # and specific transactions documenting how much
was paid for the car, as well as how
much profit it was sold for, it is a moot point. It would be a huge grey
area in tax law if you ask me and highly unenforceable.
As long as it not an outrageous amount deposited in your account which
could possibly raise a red flag.
So sell away my friends, just keep it to yourselves!
Thanks again, Matt
Peace
On Wed, Mar 16, 2022 at 5:12 PM Erik Kolstoe <ekolstoe at gmail.com> wrote:
> 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
>> _______________________________________________
>>
>>
>> Detomaso Email List is not managed by POCA Posted emails must not exceed
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>> 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
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>>
>> To manage your subscription (change email address, unsubscribe, etc.) use
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>>
>> Members who post to this list grant license to the list to forward any
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>> They also grant the list owner permission to maintain an archive or approve
>> the archiving of list messages.
>>
>
-------------- next part --------------
Thanks to all for chiming in onA the fun subject of taxation!
Thank you for the link Erik although that wasA from 2018 and tax laws
seem to change with each administration.
In my original post I mentioned "wasting assets" and cars older than 50
years being exempt from capital gains tax.
Turns out this only applies in the U.K. as a result of the "Taxation of
Chargeable Gains Act 1992 (TCGA 1992 Sect 44).
It applies to plants and machinery only from what I could decipher from
the legal mumboA jumbo. I've been wrong before.
Maybe our British brethrenA can comment further on this!
After talking to a family member who has bought and sold a lot of
collector cars he assured me they will not be knocking on my door.
He never declares any profit to the IRS and moves money around in his
bank account all the time. Maybe he's just lucky but I've never heard
of anybody being audited for a car sale.
The exception is if you run a business or it's your only source of
income.
I believe now that unless there is specific documentation available
which ties your S.S. # or tax id # and specific transactions
documenting how much was paid for the car, as well as howA
much profit it was sold for, it is a moot point. It would be a huge
grey area in tax law if you ask me and highly unenforceable.
As long as it not an outrageous amount deposited in your account which
could possibly raise a red flag.
So sell away my friends, just keep it to yourselves!
Thanks again, Matt
Peace
On Wed, Mar 16, 2022 at 5:12 PM Erik Kolstoe <[1]ekolstoe at gmail.com>
wrote:
Sportscar Market Magazine had a great write up on this very topic in
their "Legal Files" section.
It can be found here:
[2]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
<[3]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 <[4]detomaso-bounces at server.detomasolist.com> On
Behalf Of opiecars--- via DeTomaso
Sent: Wednesday, March 16, 2022 8:14 AM
To: Matt <[5]nwpantera at gmail.com>; Gray Gregory
<[6]rgg at gregorycook.com>
Cc: [7]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.
[8]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
<[9]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 <[10]detomaso-bounces at server.detomasolist.com> On
Behalf Of Matt
Sent: Tuesday, March 15, 2022 6:19 PM
To: DeTomaso Mail List <[11]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
[12]DeTomaso at server.detomasolist.com
[13]http://server.detomasolist.com/mailman/listinfo/detomaso
To manage your subscription (change email address, unsubscribe,
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Members who post to this list grant license to the list to forward
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the list. They also grant the list owner permission to maintain an
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_______________________________________________
Detomaso Email List is not managed by POCA
Posted emails must not exceed 1.5 Megabytes
DeTomaso mailing list
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[15]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. mailto:ekolstoe at gmail.com
2. https://www.sportscarmarket.com/columns/legal-files/tax-landscape-for-collectors
3. mailto:mbefthomas2 at gmail.com
4. mailto:detomaso-bounces at server.detomasolist.com
5. mailto:nwpantera at gmail.com
6. mailto:rgg at gregorycook.com
7. mailto:detomaso at server.detomasolist.com
8. https://www.jdsupra.com/legalnews/washington-state-capital-gains-tax-2935144/
9. mailto:rgg at gregorycook.com
10. mailto:detomaso-bounces at server.detomasolist.com
11. mailto:detomaso at server.detomasolist.com
12. mailto:DeTomaso at server.detomasolist.com
13. http://server.detomasolist.com/mailman/listinfo/detomaso
14. mailto:DeTomaso at server.detomasolist.com
15. http://server.detomasolist.com/mailman/listinfo/detomaso
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