QUOTE(rhodyguy @ Jan 24 2017, 10:12 AM)
it's the total of the $ you're going to be paying after the hammer drops that is a little alarming.
what is the scenario with regards the IRS when $90K+ suddenly appears in some account? audit time?
for exactly that reason, i eventually declined a large tempting offer for my car last year - the buyer was a California "collector-dealer" - who would report his cost as his new basis - and was paying by traceable bank transfers
IRS Publication 551 is sobering
no matter how many old receipts we have - if we are selling as individuals it's a considerable problem - especially with cars that have gone up astronomically in value in the past few yrs & as pointed out above, especially if we did a lot of work ourselves (it's just a hobby, ya' know)
the reportable gains hit made my net far too low –I don’t need the money & I still like the car; so instead I decided to get rid of a couple other cars that won’t be a tax problem & spend my waning yrs enjoying just one - maybe someday i can just swap it for something of similar value that i'd enjoy more?
i have a friend who deals in hi-$$ US-iron a lot - he only does CASH; and i've subsequently had interest in my car from a similar fellow who said up front - " I bring CASH" (that can be a reason to sell for less than "auction value")
- how one gets a lot of cash into one's bank is another matter - the banks have reporting rules to follow, including if they see a whole bunch of "under-$10K" deposits
but maybe we can be too paranoid - or maybe we have no choice but to sell (
been there....)
fwiw - a friend who privately sold a collectible vintage sports racer 2 yrs ago just took & deposited 2 20K payments and nary a thing happened - no IRS, no state taxes, no bank reports, etc
‘way back in time – I used to do “1031 exchange” real estate deals that delayed some problems – but they can be intensely complex, can require multiple parties, and are often scrutinized (google it)
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