Why did this 1973 tii sell for $93K?

[COOP]

Don’t remind me! I’m not going to screw around with those guys...I’m just going to grit my teeth and pay it, not worth messing around. At “least” the CG rate is “only” 15% but it’s still going to be a major hit. The only way to avoid paying CG (other than being paid with a brown bag filled with cash) is a “1031 Exchange” in which you have up to 2 years to purchase a vehicle of equal or greater value to the price of the car you just sold + enhancement expense. Same concept as rental properties...

 

COOP

[markmac]

Sorry to even bring that up, I was thinking maybe you had some crafty way of avoiding.  I didn't even think about it at all until my wife and I were in doing our taxes this past year - my accountant knew about my car and asked me how it was coming along...I had seen an article somewhere about that subject (Motorsport mag or some other such) and honestly never even thought about it, so I asked about it and got the 'good' <not> news.  The tax thing is never ending and a bummer especially here in California...but then I digress.  So regardless of whether it is a $5k that you sell for $30k or a $30k car you sell for $300k.....look out....the lights go on when deposits get made like that.  Pillow case of cash?

[tomphot]

I’m not a CPA and the following comments are worthless.  

The tax thing is why you keep track of every penny you spend on the car.  You restore it and make a profit - everything you have spent on the car from the time you bought it until you sell it are deductible.  I have known folks who even deduct car shows, research and travel as marketing expenses - when they claim the sale.  Then again, many, many more use brown

paper bags. 

[yeewiz]

2 hours ago, tomphot said:

I’m not a CPA and the following comments are worthless.  

The tax thing is why you keep track of every penny you spend on the car.  You restore it and make a profit - everything you have spent on the car from the time you bought it until you sell it are deductible.  I have known folks who even deduct car shows, research and travel as marketing expenses - when they claim the sale.  Then again, many, many more use brown

paper bags. 

 

Actually, your comments are exactly on point.  It'll be interesting to calculate the tax basis of this car.

[joebarthlow]

2 hours ago, tomphot said:

I’m not a CPA and the following comments are worthless.  

The tax thing is why you keep track of every penny you spend on the car.  You restore it and make a profit - everything you have spent on the car from the time you bought it until you sell it are deductible.  I have known folks who even deduct car shows, research and travel as marketing expenses - when they claim the sale.  Then again, many, many more use brown

paper bags. 

tax deductible as a business expense if you're paying taxes on the profit made from the sale of the car. otherwise you're reporting a loss and inviting an audit from the IRS.

[iinca]

After  capital gains tax your still going to to be alot farther ahead then you expected

 

Capital Gains tax is rough for sure but hell 93K is a sh*tload of $$ for a car that should have gone for 50k max in

 

todays market. Even if you pay a pirate'$ booty to Uncle Sammy' it's still a swingin' deal.

 

 Tax is like a steak and lobster dinner date with a possible mate. You HAVE TO PAY to play....so why stress? Just pay...and STFU...it's The United States of America and it's where we live..

 

 Perfect storm. ... There were wealthy bidders  who really wanted this car. Multiple parties had a h*rd on for this car...(with good reason...).

 

AND when I say wealthy bidders I MEAN deep pockets kind of money. Like who gives a rat's as* type of $$. Someone that spends 93k on a tii..(granted one of the finest most beautiful 4 speed original classic colored examples with insane stock seats and functioning clock  I've ever seen)..is rock star rich..oil rich...hollywood rich. Thurston Howell the 3rd kind of $$....whoever..they spent the dough and it was like no big deal...end of story. It's probably parked next to their special edition Veyron right now in some heated warehouse in Connecticut full of classics'.

 

PS: I guess our cars our worth more. YAHOO!!!  Sounds good but there's two sides to that. Are round tail tii's now out of reach of the average Joe'?...like 356's? I hate that thought. 

Edited October 20, 2017 by iinca
logic

[conkitchen]

9 hours ago, iinca said:

....PS: I guess our cars our worth more. YAHOO!!!  Sounds good but there's two sides to that. Are round tail tii's now out of reach of the average Joe'?...like 356's? I hate that thought. 

Porsche 912's where always the red headed step child of the platform, then somebody decided to ask more and got it. Soon (as in the past 10 years) They are now going for what 911's sell for. 

 

The real fallout comes from Joe Shmoes who take a reference to high water mark cars. They apply it to ALL levels of condition cars, assuming if a few cars are selling for that,  mine is worth so much more now. The market might correct them, time will tell.  

 

But what do I know.  Money, it's a hit. 

 

Front engine Porsches are starting to look like the affordable platform to get into before Joe Shmoe does. 

[iinca]

right...912's..I had a friend who bought a fairly rough 912 in 97'. I never gave that car a second look..Like you say now they're another auction darling.

 

I'll retire and give my car to charity if 924's become collector's items..

Edited October 20, 2017 by iinca

[joebarthlow]

not quite out of reach just yet...

 

https://bringatrailer.com/listing/1975-bmw-1502-2/

[maharaja]

You may want to check the capital gain tax on collectibles. I did recently and was advised it is 28%. Good news is that there was a gain.

Edited October 21, 2017 by maharaja

[yeewiz]

the capital gain tax rate for collectibles starts at 10% and maxes out at 28%, depending on filing status and income.  it's a graduated rate of 10, 15. 25. and 28%.

[COOP]

18 minutes ago, maharaja said:

You may want to check the capital gain tax on collectibles. I did recently and was advised it is 28%. Good news is that there was a gain.

 

Well aware of the “collectible” delineation, but Google research suggests that autos are not included and therefore subject to the lower (15%) rate...which still sucks.

 

Yes, I got lucky in that (as the Bimmer article covered) I managed but didn’t pay for the major restoration of the car at Vantage in CT back in 1998. The price tag for that was $55K in ‘98 dollars.

 

I’d be surprised if the seller of the BaT car has to worry about much, or any, CG given the extent and quality of the work performed under his stewardship.

 

COOP

[inkatouring]

10 hours ago, conkitchen said:

 

Front engine Porsches are starting to look like the affordable platform to get into before Joe Shmoe does. 

 

 

Actually, mid-engine Porsches are the best Porsche for the dollar, specifically the Cayman.  Unbelievable car for a decent price for what you're getting.

 

[OriginalOwner]

Instead of receiving 1 big check for $93K  ...... have the buyer write you 15 checks for $6.2K each ...... zero scrutiny for that.

 

Cheers,

 

Carl

[tomphot]

8 minutes ago, OriginalOwner said:

Instead of receiving 1 big check for $93K  ...... have the buyer write you 15 checks for $6.2K each ...... zero scrutiny for that.

 

Cheers,

 

Carl

That old $10K trigger was tossed a while ago.  Instead, it’s now a moving figure for deposits from $7500 or so and above to prevent multiple deposits just under 10K.