[Chrysler300] Selling a 300

["Tom" <tdcox@xxxxxxxxxxxxx>]

Hey Terry and Jerry,

 

Generally, a car is considered a personal asset (not a business asset) and if you sell it for more than you have invested in it, it is taxable income. On the flip side, losing money on the same car is not deductible. This isn't fair but it is the tax law.

 

The investment aspect would include what you paid for it and any improvements (similar to a house) such as repaint, engine rebuild, etc. but would not include normal maintenance (tune-ups, oil changes, etc.). If you inherited the car, the initial value of the car is the Fair Market Value on the date of death of the previous owner.

 

The good news is that it would be subject to capital gains rates, assuming you owned it for more than a year.

 

One other alternative that is somewhat tricky would be a tax-free exchange. This is where you trade your car for another and as long as you don't receive any cash on the trade, the transaction would not generate any taxes due. You would, however, have to report the trade on your tax return. For example, if you traded a 300C for a 300F and traded even, there would be no tax due. So simply trade your ride for something else you have always wanted!!

 

If you have any specific questions, let me know.

 

Tom Cox

 

 

From: Chrysler300@xxxxxxxxxxxxxxx [mailto:Chrysler300@xxxxxxxxxxxxxxx] On Behalf Of jerrylindsay300h@xxxxxxxxxxxxxxx
Sent: Monday, April 22, 2013 10:07 AM
To: Listserver Chrysler Club; Terry Mctaggart
Subject: Re: [Chrysler300] Selling a 300

 

  

Great question Terry, something to look at and consider. I plan on egtting rid of some of my 62's this year. My age and I can't do the things I used to do and can't afford to pay others. 

Jerry Lindsay

---- Terry Mctaggart <terrymct999@xxxxxxxxx <mailto:terrymct999%40yahoo.com> > wrote: 
> Looking at the asking and sales prices of 300s, some of our cars are beginning to be worth real money.  Does anybody out there have any knowledge / experience on how to handle the tax issues, both federal (capital gains) and local (sales) issues of such an exchange?  Terry McTaggart
> 
> [Non-text portions of this message have been removed]
> 





[Non-text portions of this message have been removed]



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