IRS,capital gains and corvettes

[Jim D.]

Re: get cash and the point is moot

I can't believe how many "honest or love paying taxes" people there are here. I don't know of one person that has ever claimed capitol gains on a car sale. I know that if you help your friend work on his car and he gave you a case of beer, TECHNICALLY, you are supposed to report the value of the beer as income. Has anyone ever done that? I don't think so. Does anyone here go get an electrical permit to change a light fixture? You're supposed to. I don't know about anyone else but I pay more than my share in taxes and don't feel I need to go looking for reasons to pay more. Sorry to rant. I'll get off my soapbox now.

[mike mccagh]

Re: get cash and the point is moot

jim: room for me on that same soapbox? regards, mike

[Clem Z.]

no problem just spend it.

not all at one time. car dealer are required to report any $10K cash deals and even if more than one sale to the same customer totaled $10K in a 12 month period

[Philip C.]

Re: IRS,capital gains and corvettes 3K

you better check again its 3000. Gambling in vegas at the tables are not taxed slots are Phil 8063

[Clem Z.]

Re: IRS,capital gains and corvettes 3K

are you saying $3000 cash deal at a car dealer get you reported? when mrs clem was at the dealership it was $10K in a 12 month period

[Duke W.]

Re: IRS,capital gains and corvettes

If your daughters inherit your car, their basis is its value on the day of your demise. Assuming no major market changes in the few months it may take to dispose of your assets, they will probably be able to claim a capital loss as their net yield on the car (gross minus sales commissions, etc.) may be less than its value at your demise, which they can claim as a capital loss.

Hanging on to highly appreciated assets and passing them on to your heirs skates capital gains, however, depending on the law at your demise they may have to pay inheritance tax.

Make sure you include a reference to a good Corvette appraisor in your letter of instruction.

Duke

[Norris W.]

Re: get cash and the point is moot

I agree with y'all on the principle, but throw 100K or so in your checking account and the bank is gonna send IRS an "unusual transaction" report which is required just like a green cash transaction. If you wanna risk a criminal failure to report issue with IRS, then let it rip, but it ain't worth the risk to me. There are all kinds of things that can raise red flags in the computer....... sudden increase in savings account interest, big reduction in mortgage interest, etc, etc. An accountant told me a long time ago that there're a lot of people who are smart enough to generate unreported income, then get caught spending it. (fortunately my business generates NO CASH whatsoever so I'm not tempted to test the theory) The other thing to consider if you think you're likely to get by with it is the guy that generated the money on the other end. Unless he's laudering money (and good at it) he will very likely raise the same red flag on his end which can make Unc' look for where the money went.

[Philip C.]

Re: IRS,capital gains and corvettes 3K

At the bank, any 3000. cash trans is flaged if you try to get 3000 in money orders at say a convenience store or post office you have to fill out paper work Phil 8063

[Brad B.]

Re: IRS,capital gains and corvettes

Again thanks for the responses. I dont think of myself as any brighter or more honest than the next guy, and I certainly dont love paying any taxes, but I do enjoy living in this country and want to follow the law especially if I could get caught avoiding the IRS. Besides if I get auditted after disclosing the sale I will post it here and it should be good for a few good laughs and I told you sos.

Having said that I do want to avoid paying every cent I can legally deduct, hence the initial question. It is pretty depressing that true hobbiests get stuck with capital gains on their beloved cars, and that the best way to skirt the IRS is to die. Hopefully my kids will have to wait a long time to get the keys..In the meantime I'll stop complaining about how much corvettes have gone up in value, I could be a pinto or pacer collector and really depressed! brad