Re: [Chrysler300] Selling a 300

[Ray Jones <1970hurst@xxxxxxxxx>]

The 10K bank notice was put into effect to combat drug money. As far as I
know the notice applies to businesses also, to prevent "Money Laundering".

All this cash I have just laying around is becoming a problem due to this!
NOT!

Ray


On Tue, Apr 23, 2013 at 1:52 PM, Terry Mctaggart <terrymct999@xxxxxxxxx>wrote:

> **
>
>
> I just returned from my dentist who is a car guy and a racer.  He also
> used to have a side business of buying and selling exotics.  He told me
> that the 10K thing (where the bank must notify the IRS of deposits greater
> than $10K) is only for cash deposits.  He said that check deposits of any
> size are OK.  Any comments?  Terry McTaggart
>
> ________________________________
> From: Tom <tdcox@xxxxxxxxxxxxx>
> To: cpaviper@xxxxxxxxxxx
> Cc: jerrylindsay300h@xxxxxxxxxxxxxxx; 'Listserver Chrysler Club' <
> chrysler300@xxxxxxxxxxxxxxx>; 'Terry Mctaggart' <terrymct999@xxxxxxxxx>
> Sent: Tuesday, April 23, 2013 8:49 AM
>
> Subject: RE: [Chrysler300] Selling a 300
>
>
>
>
>
> Thanks to Noel for a far more comprehensive discussion of the issues
> surrounding income and losses of collector cars. Tax return treatments are
> complex and fraught with pitfalls. Anyone that plans to sell a valuable
> asset should consult with their tax professional prior to embarking on the
> transaction. The family income level, the purpose of owning the vehicle and
> may other factors affect the tax treatment of a sale as outlined below by
> Noel. Buyer and seller beware!!
>
> From: mailto:cpaviper%40comcast.net [mailto:mailto:cpaviper%40comcast.net]
>
>  Sent: Monday, April 22, 2013 10:23 PM
> To: Tom
> Cc: mailto:jerrylindsay300h%40tampabay.rr.com; Listserver Chrysler Club;
> Terry Mctaggart
>
> Subject: Re: [Chrysler300] Selling a 300
>
> Hello Group,
>
> Adding to what Tom has laid out - the U.S. tax regulations provide for 3
> classifications from which an owner is considered - Dealer, Investor,
> Collector - and different income tax outcomes result under each of these.
> State and local sales/use tax issues are outside this income tax discussion.
>
> Dealer - someone engaged in the trade or business of selling, primarily to
> customers. Court cases further define Dealer status. The U.S. Supreme Court
> stated the taxpayer must be involved in the activity with continuity and
> regularity, and the primary purpose must be for income or profit. Dealers
> are subject to ordinary income tax rates on their taxable income; they also
> benefit from their net business losses.
>
> Investor - buys and sells primarily for investment, rather than for
> personal use and enjoyment, or as a trade or business. Investors can deduct
> their investment expenses as an other itemized deduction subject to income
> limitation. Investors can also report capital loss on sale. The courts have
> examined various factors (Dealer vs. Investor), including -
>
> * purpose for which the property was acquired
> * purpose for which it was held
> * frequency, continuity and substantiality of sales
> * duration of ownership
> * use of proceeds from sale of the property
> * business of the taxpayer
> * time and effort devoted to sales activities re the asset in question, by
> developing or improving that asset, soliciting customers, and advertising
>
> Indicators of Investment -
>
> * investment purpose was of primary importance
> * collector must intend to hold the [300] for investment (collector's
> financial position, investment history, believes [300] is an inflation
> hedge, and whether collector has made personal declarations of investment
> purpose and intention)
> * consulting with experts on purchases
> * reading pertinent publications
> * participating in collection-related activities
> * devoting time to the collection
> * making an effort to display the collection publicly, so as to enhance
> its value
> * developing expertise about the collection
> * keeping business-like records and using a business-like method of
> accounting for the collection
>
> Collector - buys and sells primarily for personal pleasure; is neither
> dealer nor investor. Ordinarily may not deduct expenses or losses. The U.S.
> long-term capital gain rate for collectibles is 28%. A Collector's expenses
> may be deductible as an other itemized deduction, up to the amount of
> income derived from that activity.
>
> Tom also mentions the possibility of a tax-deferred (Section 1031)
> exchange transaction, that's available to Dealers and to Investors, but not
> to Collectors. There's a clear incentive for this purpose to report the
> transaction as an Investor. It's important to note that the sales proceeds
> must be fully deposited into a tax-deferred escrow account, to be
> reinvested in the replacement vehicle, in addition to several other
> technical requirements that must be fulfilled.
>
> There's yet another type of exchange - "Involuntary Conversion" (Section
> 1033) exchange in casualty loss circumstances such as flood, fire or theft
> damage, and reinvestment of insurance proceeds received. Many great cars
> were badly damaged here in the past week with the Chicago area flooding
> we've had in the past few days. In this type of exchange, the owner can
> receive the cash proceeds, and has until the end of the 2nd tax year
> following the casualty loss year to reinvest these proceeds to defer a
> taxable gain.
>
> And, note - collectibles are not allowed in self-directed retirement -
> IRA, SEP - accounts.
>
> Documentation is key! Build your story around your tax position. These
> comments just begin to touch upon the issues that come into play, and there
> are significant gray areas within which you can form your own
> interpretations.
>
> Noel Hastalis
>
> Burr Ridge, IL
>
> F coupe
>
> _____
>
> From: "Tom" <mailto:tdcox%40bellsouth.net>
> To: mailto:jerrylindsay300h%40tampabay.rr.com, "Listserver Chrysler Club"
> <mailto:chrysler300%40yahoogroups.com>, "Terry Mctaggart" <mailto:
> terrymct999%40yahoo.com>
>
> Sent: Monday, April 22, 2013 10:02:48 AM
> Subject: [Chrysler300] Selling a 300
>
> Hey Terry and Jerry,
>
> Generally, a car is considered a personal asset (not a business asset) and
> if you sell it for more than you have invested in it, it is taxable income.
> On the flip side, losing money on the same car is not deductible. This
> isn't fair but it is the tax law.
>
> The investment aspect would include what you paid for it and any
> improvements (similar to a house) such as repaint, engine rebuild, etc. but
> would not include normal maintenance (tune-ups, oil changes, etc.). If you
> inherited the car, the initial value of the car is the Fair Market Value on
> the date of death of the previous owner.
>
> The good news is that it would be subject to capital gains rates, assuming
> you owned it for more than a year.
>
> One other alternative that is somewhat tricky would be a tax-free
> exchange. This is where you trade your car for another and as long as you
> don't receive any cash on the trade, the transaction would not generate any
> taxes due. You would, however, have to report the trade on your tax return.
> For example, if you traded a 300C for a 300F and traded even, there would
> be no tax due. So simply trade your ride for something else you have always
> wanted!!
>
> If you have any specific questions, let me know.
>
> Tom Cox
>
> From: mailto:Chrysler300%40yahoogroups.com <mailto:
> Chrysler300%40yahoogroups.com> [mailto:mailto:Chrysler300%
> 40yahoogroups.com <mailto:Chrysler300%40yahoogroups.com> ] On Behalf Of
> mailto:jerrylindsay300h%40tampabay.rr.com <mailto:
> jerrylindsay300h%40tampabay.rr.com>
>  Sent: Monday, April 22, 2013 10:07 AM
> To: Listserver Chrysler Club; Terry Mctaggart
> Subject: Re: [Chrysler300] Selling a 300
>
> Great question Terry, something to look at and consider. I plan on egtting
> rid of some of my 62's this year. My age and I can't do the things I used
> to do and can't afford to pay others.
>
> Jerry Lindsay
>
> ---- Terry Mctaggart <mailto:terrymct999%40yahoo.com <mailto:
> terrymct999%40yahoo.com> <mailto:terrymct999%40yahoo.com> > wrote:
> > Looking at the asking and sales prices of 300s, some of our cars are
> beginning to be worth real money. Does anybody out there have any knowledge
> / experience on how to handle the tax issues, both federal (capital gains)
> and local (sales) issues of such an exchange? Terry McTaggart
> >
> > [Non-text portions of this message have been removed]
> >
>
> [Non-text portions of this message have been removed]
>
> [Non-text portions of this message have been removed]
>
> [Non-text portions of this message have been removed]
>
>  
>



-- 
*Ray Jones. Y'all come on down an see us. Ya hear?*


[Non-text portions of this message have been removed]



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