Income Tax on Classic Car Sales

[Challenger RTA]

a personal use car isnt depreciated

I understand that. The separate deductions personal and business.I have driven 150.4 mile one way to work every day for months and 202 miles one way short term. driving my own car. The bill or law has to be read. and deciphered. A Professional knows their next move. Dose the the car turn into a restoration a LLC or other ? That's what your for.

 

[Mopars & Missiles]

Someone here is a

 

[Beekeeper]

Good discussion. You’ve all given me much to think about. For sure, I’m going to do a better job of keep financial records on stuff like this in case I ever have to go through an audit.

 

[budascuda]

we are not a piggy bank to be raided.

Oh my friend, how truly we in fact ARE!

 

[KVB]

Just a rant here....but let's say I pay a SC property tax on all my vehicles

2015 GM2500 - $5$$ annually
2017 civic - $2$$ annually
1970 Plymouth - $$

Now if I sell my vehicle - even though I paid taxes on initial purchase and annually - they want more??!! I'm not a business, I don't flip cars. FU .gov.

I understand the $600 threshold has been in place for a while, it just wasn't reported because it was a money grab. Now the gov is making it a money grab if you sell anything over $600 on eBay/FBmarket/etc (and as another mentioned Venmo/paypal/zelle)..... You will get a 1099 from the listing and/or transaction company.

If I'm going to get taxed on both sides of a transaction, even for a loss........ I'll deal in cash and say FU .gov.

And if folks are wondering why entry to e-body costs around $20-30k nowadays....Well maybe this explains things. idk....it's a rant I'm on...thanks for reading.

 

[KVB]

I agree cash is the key going forward but hard to do with tens of thousands or even larger sums.

It shouldn't be. I "should" be able to withdraw any amount $$$ on any given day. But I can't (banks don't hold much), and it makes me think it's better to hang on to assets in the mean time.

 

[Beekeeper]

KVB, I feel the same way. I pay through the nose with 100+ different taxes. It’s career politicians that do this to us. On both sides. And we let them by always voting for incumbents. They weave complex rules into the tax codes and force every citizen to navigate it. No American should be required to hire an accountant to put together 60 page tax returns. Nor should we live in fear of tax audits because we sold a car for a profit for once.

I don’t have an issue paying some taxes to keep things going but it should be simple. Just a flat rate tax on all income with no progressive rates. They constantly look for ways to gather revenue and we citizens are just the dirt they farm or mine for new streams of income.

On your other point of cash, I would be hesitant to accept $100k in cash for my car for fear of it being counterfeit. And if I knew it wasn’t, I couldn’t put it in a bank or I’d get a suspicious activity report lodged on me. So I leave it in my safe and hope I never have a bad fire because insurance wouldn’t cover that. $10-20k cash is doable but that would be about my comfort level.

I think the real solution is to never, ever vote for an incumbent or career politician. Then the new people would never get anything done. No new tax laws. They’d be forced to spend their energy learning their job and less on how to enrich themselves at our expense.

 

[ted s]

boy did this go off topic

 

[Challenger RTA]

Tax audits.I have been audited.It's not that bad.just have you paper work in order and there in an out in three hail Mary's.
They just want to get in and out and gone. One just has to careful of the triggers. A Professor said to me one time. If you are paying taxes your making money. What's the alternative? Or Al Capone!

 

[Beekeeper]

Paying taxes is far better than being poor and paying none. Agreed. I only gripe that our ”humble public servants“ have deliberately created such a mess that I have to hire professionals every year to comply with their requirements. It shouldn’t be that complicated.

The very fact that I have to create a post to learn more about tax implications from my hobby shows how ludicrous the tax code is. Replies to this post show that there are varied opinions so clearly it is not that clear.

If I had a different hobby to pass the time, such as knitting cat sweaters, and I chose to sell my sweaters online to recover the material costs, I shouldn’t be required to show anything to the government. Let alone be required to hire an accountant to make sense of it all. Even if I make a profit throughout the course of a year. At some point, we become servants to our elected officials instead of the other way around.

Okay, I’ll climb down off my soapbox now!

 

[Bret Schneider]

This will make you feel better. Just saw this today.

"A recent analysis from the nonpartisan Urban-Brookings Tax Policy Center estimated that 57% of Americans paid no income taxes last year."

That's how you get to where we are today. More than half the country just eating at the public trough.

 

[Beekeeper]

That makes me feel loads better! We are creating a nation of Have Nots.

 

[Challenger RTA]

IF you don't know this.This will make you feel so much better. In short: Those that have not worked enough To qualify for a minimum SSI monthly check of $1000. The 2016 reform SSI act will raise the monthly check to $1000 and the plan to pay for it is to reduce other monthly check by 21-23%. What a Brain Storm. Take away from the haves and give it to the have not's. How to fix it,people working. I'm sure there is more to it,read the fine print.

 

[Beekeeper]

Imagine how things will look in fifty years. Probably like Mexico where 5% are rich and 95% just exist. Getting more like that in places like San Francisco every year.

That is the end result of Equity. Everyone is the same. Equally miserable in poverty. There won’t be a raising up of living standards. Just drag the middle class down so everyone is equally unhappy and without hope. And we keep voting in the same people who will get us there.

But I did get my answer in this post. I’m going to save every receipt that has anything to do with cars. If the IRS comes knocking about one of my sales, their gonna get a fifty page spread sheet, backed by a box full of receipts, showing that I actually took a loss.

 

[Challenger RTA]

I have said since the 70's.Why is it,if there is a problem in the world.Dial 1 800 USA COPS. Another thing you cross the boarder into the USA you get a check,cross a boarder into another country you get a bullet! I believe in helping a neighbor. We can't help ourselves how can we help someone else. Forgive a $10 billion loan to Brazil in the 80's. and others. /// And on a different note are you close in location to Youtuber Scotty Kilmer and UGT. A few other thuthsayers. I like are Nick garage, .Road kill show and Steve Magneante craw.Kens karpentry check him out.

 

[ted s]

im a cpa with 35 plus years of tax experience

 

[challenger6pak]

Just a rant here....but let's say I pay a SC property tax on all my vehicles

2015 GM2500 - $5$$ annually
2017 civic - $2$$ annually
1970 Plymouth - $$

Now if I sell my vehicle - even though I paid taxes on initial purchase and annually - they want more??!! I'm not a business, I don't flip cars. FU .gov.

I understand the $600 threshold has been in place for a while, it just wasn't reported because it was a money grab. Now the gov is making it a money grab if you sell anything over $600 on eBay/FBmarket/etc (and

If I'm going to get taxed on both sides of a transaction, even for a loss........ I'll deal in cash and say FU .gov.

And if folks are wondering why entry to e-body costs around $20-30k nowadays....Well maybe this explains things. idk....it's a rant I'm on...thanks for reading.

They know we will go to cash. It is why they are looking into digital currency.