Auction and taxes

[Bill M.]

[Harry S.]

Re: Auction and taxes

You could but you are still responsible for the taxes. If you don't claim the gain you are cheating the tax man.

[Robert W.]

Re: Auction and taxes

When I purchased my 1966 Convertible, I marched down to the DMV and paid the full tax bill. I think the DMV agent (MA) was a little surprised to see that large of a check, but I know I'll never have someone coming after me for it. The paper trail is pretty extensive with any larger purchase and tracking someone down could be pretty simple.

[Larry M.]

Re: Auction and taxes

Robert:

There are at least two taxes in play here: tax to license car for street use, and capital gains tax on the investment.

This car will never be licensed for street use.............and in fact it never could be (legally). But the capital gains tax is real.

Larry

[Terry M.]

Re: Auction and taxes

Robert:

There are at least two taxes in play here: tax to license car for street use, and capital gains tax on the investment.

This car will never be licensed for street use.............and in fact it never could be (legally). But the capital gains tax is real.

Larry

Larry

I can understand why one would not want to license that car for street use (I can think of about 2.5 million reasons), but I can not grasp why it can not be legally licensed for street use. Please explain.

[Bill M.]

Re: Auction and taxes

Yes I know you have to pay sales tax to drive it I meant paying the capital gains tax after all is said and done. That is is some nut

[Larry M.]

Re: Auction and taxes

Larry

I can understand why one would not want to license that car for street use (I can think of about 2.5 million reasons), but I can not grasp why it can not be legally licensed for street use. Please explain.

Terry:

When the 1967 L88 was made, it was designated for "off road" use only, and did not comply with the emissions requirements of the day (which were minimal). So it was not made for the street, only the track. Also no heater/defroster provisions.

But back in 1967, things were a bit simpler than today regarding emissions testing and vehicle registration.......so a few of these cars did make it to the streets. And later, after many title exchanges etc., there was a blurring of these emissions issues/requirements.........so the cars could be registered in many states because the authorities didn't know any better.

This changed for the C3 L-88 cars.

Larry

EDIT: The 1967 L-88 used a road draft tube versus a PCV system.........and was also not tested or permitted for California emissions requirements.

[Terry M.]

Re: Auction and taxes

Terry:

When the 1967 L88 was made, it was designated for "off road" use only, and did not comply with the emissions requirements of the day (which were minimal). So it was not made for the street, only the track. Also no heater/defroster provisions.

But back in 1967, things were a bit simpler than today regarding emissions testing and vehicle registration.......so a few of these cars did make it to the streets. And later, after many title exchanges etc., there was a blurring of these emissions issues/requirements.........so the cars could be registered in many states because the authorities didn't know any better.

This changed for the C3 L-88 cars.

Larry

EDIT: The 1967 L-88 used a road draft tube versus a PCV system.........and was also not tested or permitted for California emissions requirements.

I understand Chevrolet's intent in building the car in 1967, but at least two of them (1968s I believe) were picked up in St. Louis and driven to California, one presumes with Missouri license plates (known as tags in some locals). With only 20 factory assembled 1967s the pool of examples is minimal, but I contend they were street legal, although perhaps not in California due to the emissions reasons you cite. I believe the any of the L88s could have been licensed for street use in the other 49 states.

The 1968 federal requirement for a defroster resulted in the 1968 and 1969 L88s having a heater/defroster. Chevrolet would not have meet that requirement if they were built for "off-road" use only and were not street legal.

[Larry M.]

Re: Auction and taxes

I understand Chevrolet's intent in building the car in 1967, but at least two of them (1968s I believe) were picked up in St. Louis and driven to California, one presumes with Missouri license plates (known as tags in some locals). With only 20 factory assembled 1967s the pool of examples is minimal, but I contend they were street legal, although perhaps not in California due to the emissions reasons you cite. I believe the any of the L88s could have been licensed for street use in the other 49 states.

The 1968 federal requirement for a defroster resulted in the 1968 and 1969 L88s having a heater/defroster. Chevrolet would not have meet that requirement if they were built for "off-road" use only and were not street legal.

Terry:

As far as I know, the C3 L-88 cars were street legal as delivered from Chevrolet. But not the 20 1967 L-88 cars.

Noland's Book on C2 Restoration page 422 discusses this. I would have to do research regarding the ability to license without emissions compliance. There have been multiple stories and written reports stating support for what I said. But that does mean any of us are correct, without doing the background research.

If I can find without to much trouble, I will post it up for you. Take care my friend.

Larry

EDIT: Here is one article. See Post #20 from SWC Duke. https://www.corvetteforum.com/forums...on-date-2.html. A lot of the entire article is about the first L-88 made and raced. Interesting, but not a lot about the 67 being street legal. More research required.

But I am certain many states really didn't care one way or the other.........and the federal law(s) was not followed. California perhaps being an exception.

A LOT of Corvette racing experience and L-88 ownership experiences in the article I posted up. Reads like Who's Who in the Corvette L-88 world.

[Michael J.]

Re: Auction and taxes

Larry

I can understand why one would not want to license that car for street use (I can think of about 2.5 million reasons), but I can not grasp why it can not be legally licensed for street use. Please explain.

One thing about Corvette Mike's car, it was sold at auction on a bill of sale only, the only title that existed is the original title, from 1967, and no owner after that wanted to surrender that original title to get it registered. But as far as I know, this could be done in most any state, you could surrender the original title, filled out to you the buyer, and get a new state title and registration. I know I could. But of course that would alter some of the "originality", if that part is of value to you.....Oh, and BTW, in my state if you titled and registered it in the state with an old out of state title not in your name, a big excise tax bill would come due to you the new purchaser, more reason not to do it....

[Bob B.]

Re: Auction and taxes

Guys, Should that L88 turn one wheel on a CALIF road, sales tax for the entire sale amount is DUE if the car enters CA within the next 6 months, 12 month if it is a CA buyer Up at the mONEREY AUCTIONS, the CALIF DMV was there the guys that took the keys to theri new toy and drove it around the block are on the hook and the CA DMV was there watching be careful
There is a attorney in SAN DIEGO THAT SPECIALIZES IN SALE TAX BIG DOLLAR CARS, BOATS AND PLANES AND THE GUY IS GOLDEN
CYA in Calif and a lot of states are on to us. Montana good luck

[Patrick H.]

Re: Auction and taxes

Here in MI, with an original title like that the DMV (Secty of State) will stamp it "historical" and hand it back to you to keep.
They did this with my Austin-Healey a few years ago when I bought it, and would do the same for this car if someone wanted to title it.
I believe that as long as it's 25 years old, they will do this.

So, not every state makes you sacrifice the title.

[Terry M.]

Re: Auction and taxes

One thing about Corvette Mike's car, it was sold at auction on a bill of sale only, the only title that existed is the original title, from 1967, and no owner after that wanted to surrender that original title to get it registered. But as far as I know, this could be done in most any state, you could surrender the original title, filled out to you the buyer, and get a new state title and registration. I know I could. But of course that would alter some of the "originality", if that part is of value to you.....Oh, and BTW, in my state if you titled and registered it in the state with an old out of state title not in your name, a big excise tax bill would come due to you the new purchaser, more reason not to do it....

In Illinois there is a way (or at least there was before the pandemic) to get the previous title back. Surrender is not necessary here, but does require one to jump through some lesser known hoops. It requires/required a trip to the state capital offices of the Secretary of State (DMV) in order to title the car and receive the voided title back. Following that, and payment of suitable fees, one has the option to get tags or not as desired and dependent on ones use of the vehicle. If the car is never on the road no tags are needed.

I don't know if it is still the case, but there used to be some states where old cars (before the late 1960s I think) didn't require a title. Ownership was transferred on a bill of sale. Massachusetts used to be that way, but I am not sure of the current status. I also believe New York was that way at one time, but I have been told that is ancient history now.

Regardless, it looks like there are some options. One might explore Montana if one had interest in such things.

[Duke W.]

Re: Auction and taxes

1967 L-88 Corvettes were not legal to register anywhere in the USA because they were not equipped with a PCV system that was required first in the 1961 model year in California and all the other 49 states in 1963.

The '68 and '69 L-88s did have PCV and exhaust emission controls, but I'm not sure it they met just 49 state or both CA and 49-state standards.

I was surprised that the '67 L-88 that I helped disassemble when new just had a road draft tube, but the owner never attempted to register it and had it trailered to his garage. I don't know if Alan Green Chevrolet would have registered it for the road if asked to. I expect they would have because the administrative staff may have not been aware that it was not legal for road use

Duke

[Kenneth B.]

Re: Auction and taxes

When I lived in Indiana you just ask at the BMV for the old title back & they stamped it void & gave it back. Thats what I did after I bought the 67 400/AC Corvette from the origional owner.