Transfer of Large Amounts of Funds?

[Zedder]

Actually Keith, Capital gains tax is 50% of your income tax rate for a maximum of 23% if you are making 6 figures.

[Keith Tedford]

I guess that I didn't understand the information that I got. With retirement coming up the income will take a drop into safer territory. Not going to give them 23% either. Don't be surprised to see one COPO Chevelle on the roads....If I can ever get it done. Guess I'm going to be Like Albert Galdi and do it myself.

[427king]

If the car is owned for 1 year or more it is considered a long term cap gain and is subject to 2o% cap gain tax,also our state adds 5% cut,for a total of 25%. If the car is owned for less than 1 year it is considered a short term cap gain and then the income realized is not a cap gain, but rather considered regular income which can be taxed at 43% here in CT[38% highest bracket plus 5% state]. In a perfect world you should sell a short term gain in a year where you have no other income to take advantage of the lower tax brackets, i havent done the math but it would save you 5 figures in taxes in any given year if you profit by 75K for example.[Not that youd want to quit your job to save that]. Another thing is if you own the car for 10 months for example,wait the extra time for sure and save up to 18% in taxes by holding it for the year.Lastly it is a big advantage to sell a car in the beggining of the year rather than the last few months of the year.If you sell a car in Jan 2007 for example the taxes arent due until April 2009. And you have 16 months to use that tax money to invest in a cd or something. if you sell in Dec 2006,you owe the tax in 5 months instead of 16 months in the previous example just by holding out on selling by a few days or weeks

[Zedder]

I hope to see it Keith! I was just talking with a friend about the fact that you hardly ever see anything really rare at the cruise nights anymore...I can't wait until the Z is done as we are going to DRIVE that car

[Keith Tedford]

Zedder, with any kind of luck we will get together with our cars some day. We cruised for some distance along the QEW in our L78 Chevelle with Scott Gay and his COPO Chevelle a few years ago. Kind of neat. We were coming home from the Waterdown show. There seem to be more people racing their cars at the SCR as well. We put close to 200K miles on the COPO car the first time around, about 30K on our L78 car since '98 and about 10K on our '72 455 Lemans. Wouldn't have it any other way. I don't think that we will be worrying about transferring large amounts of funds any time soon.

[amuseme]

How about this... The ceo of, say, Northwest Airlines for example, 'makes' a couple million bucks a year and drives the company into bankruptcy. My little business is doing OK, so I figure I'm worth at least what that joker is! This means I'm actually working for a wage 'deficit', so anything I might clear on an old car is just getting me closer to what I owe me! Anybody think 'Aunt IRiS' will buy it!?! (be nice,Dennis, I read your second post here and I know your wife!!!)

[Unreal]

Leave it to your kids...they will take possession at the value on the day of your death.

[Keith Tedford]

Perhaps we can have them back date our death certificates to 1972. Talk about a hijacked topic.

[COPO PETE]

A year ago I was offered some big money for one of my COPO's. My accountant told me I would have to pay capital gains on it at 50%. Did'nt have a lot of bills to prove, cause a lot of the parts I paid cash for. Luckly I don't want to sell, I'm having too much fun. The thing that pissed me was if on the same day I bought two cars at $50,000, and in ten years, the one car was worth $100,000, I would have to pay capital gains on $50,000. The other car was a poor investment and sold it for $10,000, I was told "it sucks to be you". I could not claim that as a expense.
I'll just hang on to my cars thanks. That's what my boys are hoping anywayz!
Peter

[Zedder]

You actually have to pay tax on 50% of the gain at your regular tax rate. So, in effect, you pay half your tax rate (maximum of 23%) on the entire profit. And yes, it pisses me off too that if you lose money, you can't claim a capital loss