SoOOo if you buy a classic car and it appreciates and you make a profit on it ...

Discussion in 'The Pub' started by Dr. Tweedbucket, Jan 15, 2015.

  1. Dr. Tweedbucket

    Dr. Tweedbucket Deluxe model available !!!11

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    .... you have to pay taxes on it as income? :waiting

    How about all the money you dumped into the car to maintain it? :fisticuffs
     
  2. CowTipton

    CowTipton Silver Supporting Member

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    Original price paid, storage, restoration, insurance, labor, etc.
    Subtract all that from your selling price.

    Now how much did you actually gain?
    You pay the capital gains rate on that.

    (I think)
     
  3. davebc

    davebc Member

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    I guess you're off the hook.
     
  4. Peteyvee

    Peteyvee Premium Platinum Member

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    How often does that happen in real life? Make a profit on a classic car...yeah, right. :spit
     
  5. m@2

    m@2 Member

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    I do have one semi relatable story. Bought a land rover defender 90 about 8 years ago. They did not import very many into the states.

    Paid around 24k for it, drove it a bit for a few years and sold it for 40k! They appreciated in value mainly just due to scarcity. It paid for my kitchen remodel :)

    I'm pretty certain that will be the last car I ever had that went UP in value
     
  6. Dr. Tweedbucket

    Dr. Tweedbucket Deluxe model available !!!11

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    911 / 930 prices took off like a rocket a little over a year ago! :idea
     
  7. Peteyvee

    Peteyvee Premium Platinum Member

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    You're not going to sell that...how would you be able to afford another one?
     
  8. cob666

    cob666 Member

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    Any improvements you made that INCREASE the value of the car can be deducted from any gains you made from selling the car. Normal repairs and maintenance are not allowable deductions unless you can prove that you purchased the vehicle as an investment and it was never considered 'personal property'. This is a tough one to prove.

    If you had the car for more than one year then the gains should be taxed at the lower capital gains rate. However, if you had the car for less than a year then the taxes on the gains are based on your income bracket.
     
  9. Structo

    Structo Member

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  10. TwoTubMan

    TwoTubMan Member

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    Many of the mega-deals are done far from the public eye, like in a Swiss bank vault
     
  11. doghouseman

    doghouseman Member

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    I think if your classic car doesn't depreciate as much as a regular new car, you should be happy. Profits are another matter.
     
  12. Tony Foran

    Tony Foran Supporting Member

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    They sure did and yours looks like you keep it in a drawer.
     
  13. rockitcity

    rockitcity Member

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    Presumably the same if you replace the word "car" with "guitar."

    I say get cash and buy something else. Don't bother with the taxes. The government is just going to waste it on something you don't approve of anyway.

    I'm not some tea-party radical either. I just think there are some things that "everyman" has to take into his own hands. With all the corporate subsidies out there, you might as well get a little subsidy for yourself.

    Disclaimer: I'm not an account, so everything I just said is pure opinion and not to be taken as legal advice.
     
  14. Dr. Tweedbucket

    Dr. Tweedbucket Deluxe model available !!!11

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    Don't need another .... really, it's been fun but time to move on to something more practical. :anon

    That's the thing, I don't even run it enough to burn through a tank of gas a year.


    That's good to know. I think book price and real world price may be two different things anyway. It's kind of like that guitar blue book. Just because a 59 LP is valued at $250K, doesn't mean you're going to get that out of it. :red
     

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