IRS and selling a car

[T77911S]

with the prices of 930's these days, if i sold my 930 for say 75,000, would the IRS tax it as income?
what about a bank reporting a large deposit to the IRS?

[biosurfer1]

Selling the car, no.

Depositing that much money in the bank, yes.

[look 171]

I think its long term investment gain

[bpu699]

How would you "not deposit" it?

Unless the owner paid cash, you still have to clear checks through an account... Right?

You could always trade it in on something .

[biosurfer1]

Yep, if cash you can do several $9999 deposits, but even those are now attracting attention.

Checks, you're pretty much guaranteed the IRS will want to know what it's about.

[MBAtarga]

Just send the cash to me and I will launder it for you.

[Hugh R]

Talk to you accountant before you list it for sale. There are revocable trusts that can avoid the capital gains tax.

[look 171]

Sell the car at 70k, give uncle sam 20k (maybe more depending on your tax bracket)??? What's left? i always wonder if its worth it?

[masraum]

Originally Posted by biosurfer1

Yep, if cash you can do several $9999 deposits, but even those are now attracting attention.

Checks, you're pretty much guaranteed the IRS will want to know what it's about.

Yeah, that won't work these days. Even if you depostited $3.5k every other day, that would raise a red flag.

[look 171]

That's daily, but once in a blue moon, it should be ok.

[wdfifteen]

Hypothetically speaking: Say I got married six months ago. Can I give my $200,000 car to my spouse to sell? Will her basis be the value of the car at the time I gave it to her?

[Tobra]

Yes, it would

Hugh speaks from experience. Don't forget, he sold James Bond's old car to the Sheik of Araby, or someone over there. No doubt Mrs R gave him the lowdown on how to handle it, but still.

[Rick Lee]

Originally Posted by T77911S

with the prices of 930's these days, if i sold my 930 for say 75,000, would the IRS tax it as income?
what about a bank reporting a large deposit to the IRS?

Don't you have a banker's box of receipts for the car? Add that to the price you paid and you might just barely be turning a profit.

[GH85Carrera]

Just take the cash to a buy a new car of your dreams.

[look 171]

Originally Posted by GH85Carrera

Just take the cash to a buy a new car of your dreams.

they will still question where the money came from if you get audited? Buying a car cash is a red flag . Tax and fine is not worth it. Like my dad said, you just don't win with those guy.

[Porsche-O-Phile]

Why not just trade for stuff? Barter ain't taxable afaik (and good luck enforcing it even if it is!)

[look 171]

Trade is fine as long as you don't trade for labor like a kitchen remodel. If the other party get audited, then they will more then likely ask about the car (that becomes their problem). Again, if an audit happens. You are only busted if you get caught. It may not be worth it with all the fines. You may end up with the original purchase price back in your bank.

[Hugh R]

Keep all your receipts against the "Cost" again, talk to a CPA, you'll also need a lawyer to set up the trust. Believe me, its well worth it.

[on2wheels52]

Originally Posted by look 171

Buying a car cash is a red flag .

Then I guess I have a lot of red flags. I've never made a car payment.
Jim

[greglepore]

Beg to differ, in the case of gift donee (person receiving) takes donor's basis, https://www.law.cornell.edu/uscode/text/26/1015. The only time there is a basis "step up" to current value is assets passed by an estate, because in theory the gain was subject to estate tax (or exclusion).

See the other thread about 911 values for other strategies-keep good records etc, many costs defray some of the gain.

Go ahead and make the minor deposits, if you want to not only owe the tax and penalty but also face criminal prosecution for "structuring".

Barter is taxable, but it is way difficult to enforce.