Quote:
Originally Posted by competentone
Yes they can, if it goes up in value -- it's called "capital gains taxes," this is not about "sales tax." (Some states have "personal property tax" too -- like South Carolina -- you pay taxes every year on your vehicles!)
And if it goes down in value, you cannot deduct your losses -- even if you bought the car initially as an "investment."
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Here's a cut & paste from the IRS tax code link you gave...do you see automobiles on this definition of collectibles?
"Collectibles gain or loss. This is gain or loss from the sale or trade of a work of art, rug, antique, metal (such as gold, silver, and platinum bullion), gem, stamp, coin, or alcoholic beverage held more than 1 year. "