Hi
OT tax question.

If I buy a 914 for $1000 and resell it for $10,000, do I have to pay taxes to NJ?

Are you going to tell NJ you sold it for $10k or just pocket the cash.

Yup!

https://turbotax.intuit.com/tax-tools/tax-t...x/INF26154.html

http://taxfoundation.org/blog/how-high-are...ates-your-state

But be thankful it is cheaper than max capital gains in CA! (Which is nearly the highest capital gains tax rate in the entire world.)

-Steve

If you are going to report the "profit" of the sale, don't forget to deduct ALL of the expenses involved. Any parts, paint, transportation and labor costs will reduce your profit and therefor your tax liability.

Remind me not to buy a 914 from you.

I just wrote checks to the Feds and the state of Calif for $ 24,000......... Tax lady says you should be happy your in the 28% tax bracket.......
The only thing that's going to make me happy in April is the Route 66 Run...

We got hit with AMT this year.

Buyer pays the sales tax in his state when he applies for the title.

This thread make me wonder if I could make the Rt66 trip a total write-off as I am simply taking a different route to my corporate business annex in Phoenix / ...By way of Flagstaff, Prescott and other minor detours and stops...........

A man has to eat. A man has to travel. The 914 is legally registered in the corporation's name and.....

Yes. Yes...

I think so.

Now let me see what my lovely wife and CPA / TCO (Tax Compliance Officer) thinks.....

Nope. The Taxman

To solve the issue of expensing this business trip out, we may need to all list each individual's profession or trade, then coagulate and distill the conglomeration of talents into a cohesively themed boondoggle - all taking place at or near Flagstaff and other listed points along the way / thereby justifying why we all need to be at the same place at the same time (coincidentally all driving 914's..........)

Thin. Yes, but with a little work......

nahhhhh. Still

Have the buyer write two checks of $5000 each. Deposit them one month apart. You should also consider that I don't know what the hell I'm talking about.

Move your business to panama and sell the 914 to another business in Panama for $1 ...

Deal in cash.

I don't tell the government thieves anything about my private business that is none of their business.

When the cars were first sold, the sales tax was paid. That is all they deserve.

Unless you live in Iceland.

Here, here!!

" Give to Ceasar what is Ceasars"

If you profit you pay tax, if you sell at a loss, oh well... What a wonderful system...

Using a corporation setup in the British Virgin Islands.

I have bought and sold many, many cars in my lifetime, and I have never paid taxes on the gains.

I never even considered it.

The current system is gonna change in a few months.......

I am looking forward to a 90+% corporate tax rate.

Once implemented, I can actually retire ......once and for all.... for good. Forever.....

Unwind the corporation, tell the Errors and Omissions insurance hacks to get Tell the On-retainer attorney to take a break, then unwind the lifestyle while picnicking at the beach or continue life in pursuit of some other non taxable event.

Larmo is correct. Business is not real business when the cost exceeds the benefit of the pursuit.

I just paid our 6 month property tax bill in an amount that could buy a home in most parts of this nation. And that money goes nowhere positive.

Yes we have great weather for daily drives - top off.

No I don't know when I last saw the top to my car or where the hell it is.

No we don't need a smelly heater... and yes, we don't have any bugs, mosquitos, snakes, or venomous lizards. But we do have outrageous taxes.

And the taxes are digging into my motor budget.

That alone is enough to make a man question the redistribution of my "wealth" (Ha!) from our 914 budget (...Ha!) to a high speed rail system we are funding in Cali / From LA to SFO

Los Angles & San Francisco: Two places that have only one thing in common. No jobs and lots of 98%er's.

I would rather drive.............

Caesar had STDs and was a punk..... OK I agree.

Inmates running the asylum....

Loons all around ......

Right. Nobody sees the cash once it goes in my pocket.
Take a check from a stranger and give them my car - no way.
Forget all that certified check crap. I don't know what a forgery looks like.

I knew you would get it Rob.


Although somehow I keep trying to pass through the eye of that needle.

It was a hypothetical. I wish I could make that kind of profit. I was having a debate with a friend that said I would have to report on the gains. It's a hobby and unless it's a business, I don't get why anyone would pay capital gains tax on selling a car. Like Chris said, the buyer pays Sales Tax when they title and register it at the Division of Motor Vehicles. Anyway I'll only deal in cash.

Open title get paid in cash... which is really really bad advice btw.
As mentioned the new owner is supposed to pay sales tax on registration of said vehicle.
At least in AZ the DMV will only hit you up for tax $$ on out of state title transfers, however, most 3rd party MVD's don't give a flying squirrel...

Also, cash deposits over 5 grand get flagged by banks automatically... because you know...

At least from a federal level, the OP would owe capital gains for the case he cited. Whether or not he reports and pays it is his issue, but technically it is a reportable capital gains. This goes beyond sales tax.

Isn't owning a Vintage Car a Hobby Expense? Hobbies are deductables.

Even if a hobby results in a capital gain its taxed. Selling pot is supposed to be taxable.

^^ agree ^^

Sounds like some of you guys have had ENOUGH!!! Hope the relocation to elsewhere on the planet works out.

You guy's are really entertaining, if you want to moan about taxes come live in the UK.
Basic 95 RON gasoline is $6.80 a gallon with over $4 of that in tax!

They do make fake cash too, you know ...

That one of them UK gallons, with the 20oz pints?

$6.80 is actually a deal, compared to the actual cost to society, which has been estimated at over $11.