Capital Gains???

[RC70SCoupe]

I am SERIOUSLY considering selling both my Early 911's next year. I was lucky to purchase them years ago at very reasonable prices before the market REALLY got hot.

The question I have is about the capital gains tax. What is the best way to keep the percentage as low as possible?

I have kept every receipt I have on the cars to show what I have "invested" in them. The binders are thick. Can the receipts be used to offset the profit?
Have guys used a 1031 Exchange in purchasing another car? Mediator holds the money
Has anyone ever purchased a personal residence using the profits from the car as the down payment?

I would like to use the profits as my downpayment on a house....

If I was REALLY smart, I would sell today and purchase while rates are low, housing down, etc. etc.
I am not that smart and having too much fun driving them

[Longballa]

You don't have to pay any tax when you sale a used car because you're not a dealer. You just get your money and do what you want with it.

[mohrgan]

You don't have to pay any tax when you sale a used car because you're not a dealer. You just get your money and do what you want with it.

What Longballa said!

[LongRanger]

. . . You don't have to pay any tax when you sale a used car . . . just get your money and do what you want with it . . .

Zis why car prices are up? . . . a tax-free gain?

[69Sman]

I am SERIOUSLY considering selling both my Early 911's next year. I was lucky to purchase them years ago at very reasonable prices before the market REALLY got hot.

Ray, my friend say it aint' so !!!!! And if it is, do I still have 'first debs' on the Targa???

[super9064]

I'm sorry to say, that is income, and it is taxable, but can be off set with expenses. If you are audited and it is discovered you will be fined. There was a series of articles about just that in "Sports car Market". The 1031 Exchange is something that I looked into, frankly don't know to much about, other than it is a bit complicated.

I would strongly urge you to discuss this with a tax professional, this forum is not the place for tax planning

[50/50]

A 1031 Like Kind Exchange typically applies to Real Estate. Any collectible that you sell at a profit will be subject to a tax on the gain. You can't forget Uncle.
Maybe it is a great time to sell your car. It ceratainly is a great time to pick up Real Estate on the cheap. The population continues to grow, people will always need a place to live, and good locations tend to have staying power. Before making any sudden moves consult a Tax Professional. There must be one on the Board that can give expert direction.

[RSTarga]

after close to 40yrs of ownership and a binder thick with receipts I think I'd still be negative even if I were able to sell at the current market prices.
Does this mean we can claim losses on every car we've sold at less than we bought it for? Wow , maybe I can get down to Romney's 13.8%.

[Dmill]

If Ray sells his cars, our little corner of the world will be the worse for it. First person to great me at the Rennsport hotel and had the privledge of hanging out with him the entire weekend....He's the kind of car guy this hobby needs a whole lot more of.

[preS]

Any collectible that you sell at a profit will be subject to a tax on the gain. You can't forget Uncle.

Out of curiosity.
What is the definition of collectible? If a person has owned a car for a long time, have a pile of paperwork and can prove that he used it frequent (which can be partly 'proven' by the paperwork) is it considered to be a collectible or just an old car (that can be a collectible to some others).

Richard