Capital Gains on muscle car (state of PA)

[427king]

[ QUOTE ]
I guess if someone wanted to give a car to there son could they sell it for a dollar Etc.

[/ QUOTE ] Dewpending on the value of the car a father and mother could gift 20K or 10K each[may be a bit higher now]. So if a car was worth under 20K parents could gift thier car to thier son,not sure how it would work on a much larger dollar car,maybe take more than one year to transfer ownner ship??

[YENKO DEUCE REGISTRY]

I'm not an expert on trusts, but it would be worth checking out. Keep in mind that for personal property that is inherited from your parents, your 'basis' (read: cost) is the FMV (fair market value) at the time of death. This is good. Here is why.

When schoneye meets his maker, and Joe gets his yellow deuce, it's as if Joe paid the FMV at the time schoneye moves on. That means that the cap gains from '70 until the day it's passed along are not taxed! I'll have to check this out again, as it's been awhile since I looked this one up, but that's the gist of it.

So, I don't think you have to worry about the 'Gift Tax Exclusion' that chuck is alluding to - plus, I think that's just for cash, but not sure.

[x Baldwin Motion]

[ QUOTE ]
Marlin,

If a car is a capitol asset can it be placed in a trust??

.............

[/ QUOTE ]


Yes, cars can be put in to a trust. We even have the two daily drivers in the family trust.

[427king]

[ QUOTE ]
If you purchase & keep a house more than two
years, you don't have to pay capital gains tax on it.

[/ QUOTE ] The point you are omitting though is that it has to be the home you live in 100% of the time .Not rental, second home,investment property,or vacation home etc etc...You guys really need to look into buying cars,collectibles,investment property,rental property,vacation homes with your retirement accounts,its a little involved but it sure beats having your retirement in a cd at 1.7%,or invested in failing banks and the like and there are no penalties for switching over,the restrictions are a bit overwelming but worth it in alot of cases.

[rubbinisracing]

Marlin,

What does the IRC say about the current 15% rate if you have no earned income in the same tax year as the capital gain? Does it fall to 5%?

[YENKO DEUCE REGISTRY]

[ QUOTE ]
[ QUOTE ]
If you purchase & keep a house more than two
years, you don't have to pay capital gains tax on it.

[/ QUOTE ] The point you are omitting though is that it has to be the home you live in 100% of the time .Not rental, second home,investment property,or vacation home etc etc...You guys really need to look into buying cars,collectibles,investment property,rental property,vacation homes with your retirement accounts,its a little involved but it sure beats having your retirement in a cd at 1.7%,or invested in failing banks and the like and there are no penalties for switching over,the restrictions are a bit overwelming but worth it in alot of cases.

[/ QUOTE ]

I also would not take that statement to the bank, as I believe only the first $250k ($500k MFJ) is tax free, they may have changed this recently though. Keep in mind that the AMT (alternative minimum tax) rules are kicking in for a lot of folks now, so certain tax breaks begin eroding rather quickly with the AMT.

Kendall, I believe the cap gain would put you into a the lowest tax bracket - which I think is 10% now.

Now I know why I don't do tax work - this stuff will drive you nutz! I'll stick to publicly held corp. SEC type work.

[Jeff Murphy]

Just FYI, there are some drastic tax code changes here in the UK so I had a discussion with my tax accountants about whether or not I should be changing my domicile and other status. I learned that there is no capital gains tax on automobiles in the UK! This is the only good news I've had in weeks....

[Schonyenko2]

[ QUOTE ]
I'm not an expert on trusts, but it would be worth checking out. Keep in mind that for personal property that is inherited from your parents, your 'basis' (read: cost) is the FMV (fair market value) at the time of death. This is good. Here is why.

When schoneye meets his maker, and Joe gets his yellow deuce, it's as if Joe paid the FMV at the time schoneye moves on. That means that the cap gains from '70 until the day it's passed along are not taxed! I'll have to check this out again, as it's been awhile since I looked this one up, but that's the gist of it.

So, I don't think you have to worry about the 'Gift Tax Exclusion' that chuck is alluding to - plus, I think that's just for cash, but not sure.

[/ QUOTE ]

He ain't gettin squat. I had the deuce before him, or his mom.I'm takin it with me.

[ChevyThunder]

I just went through this last year and it is 15% for a car owned over a year according to my CPA.

[L72COPO]

Amen