Investments or hobbies....

[WILMASBOYL78]

Curious about opinions on collector cars being investments or hobbies as far as the "tax man" is concerned. Not looking for any secrets just wanted some feedback on how some of you treat expenses like storage , insurance, restoration, etc. Any help would be appreciated. PM your thoughts if that makes it easier. Happy New Year... http://www.yenko.net/ubbthreads/images/graemlins/worship.gif

wilma

[Don_Lightfoot]

This may not be of interest to you, but in Canada there are no tax implications with collector cars if they are for personal use and registered in your personal name.

Such is not the case if they are registered in a business name and I know a lot of enthusiasts who do that. They then would fall under tax laws relative to capital gains and losses. Don't know about Depreciation and/or Capital Cost Allowance on them either.

Also, here in Canada, you cannot own collectibles in your Retirement Plans, unless there is some weird way you could do it through a public company that owns the collectibles. If you could it would have been a good way to improve your equity over the past few years in relation to other investments.