Quote:
Originally Posted by Hugh R
I read the tax code and it doesn't seem to fall under the "collectable" category. That's for art, coins, stamps, etc. My accountant said its the 15% capital gains for the feds and 9% ordinary income for California. I can speak to my accountant on Monday....
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The subject sparked my interest and I was reading:
http://www.irs.gov/publications/p17/ch16.html#d0e39501
I don't see anything to indicate that an automobile is considered a "collectible" for tax purposes, and even if it was, it looks like -- depending on your overall tax situation -- you still might not owe the 28% collectibles rate. (They'll actually apply the lower 15% rate to collectibles depending on the other gains/taxes owed! Shocking!)
I haven't done a general web search, but this topic must have come up before with "car collecting" being as popular as it is in this country.
I'd be interested in hearing the conclusions of your accountant -- probably on Tuesday.
The 15% and 9% CA takes still sounds like a pretty big "kick in the teeth" -- have you calculated if you have any
real gains, not just "gains" caused by inflation? Inflation calculator (I've never used the site, so don't know its accuracy):
http://www.westegg.com/inflation/