[K330i]

i think the amount of cars is the issue here. if his state has a certain number of cars he can sell per year that moves him into dealer status then that's what he needs to look into.

but, if he sells less then the state limits him to and he titles and registers the car to himself then it is considered his primary vehicle and capital gains should not come into play here.

same situation with your house. when yousell your primary residence for a profit (usually yes) you do not pay c.g. tax.
you only pay capital gains non-primary residence (rentals, etc.) that you buy to sell or rent.

can a tax guy chime in here and set us straight?

[MadDog]

Originally Posted by K330i

same situation with your house. when yousell your primary residence for a profit (usually yes) you do not pay c.g. tax.
you only pay capital gains non-primary residence (rentals, etc.) that you buy to sell or rent.

Who told you that ???

You can offset the capital gains on selling your primary residence IF you've lived in the house for 3 of the last 5 years. 250K for you, and if filing a joint return, 250K for your spouse.

[TurboFan]

Originally Posted by K330i

...same situation with your house. when yousell your primary residence for a profit (usually yes) you do not pay c.g. tax.
you only pay capital gains non-primary residence (rentals, etc.) that you buy to sell or rent...[/B]

can a tax guy chime in here and set us straight?

I'm not a tax guy, but I stayed at a Holiday Inn Express last night....

You're a little off on the house tax stuff. I buy and sell realestate on the side, and it's a little more...lot more...complicated than that.

[K330i]

Originally Posted by MadDog

Who told you that ???

You can offset the capital gains on selling your primary residence IF you've lived in the house for 3 of the last 5 years. 250K for you, and if filing a joint return, 250K for your spouse.

which covers 90% of the population in the U.S....at least me anyway. i will never clear $250k selling my house. hell i didn't even pay $250k for it...

so unless we have some of the billionaire boys club members on this board then it probably will cover most everyone on here.

and yes most people staying in their primary residence will stay longer then 3-5 years.

Originally Posted by TurboFan

I'm not a tax guy, but I stayed at a Holiday Inn Express last night....

You're a little off on the house tax stuff. I buy and sell realestate on the side, and it's a little more...lot more...complicated than that.

maybe you need to stay a few more nights.....because it ain't that complicated.

[MadDog]

Originally Posted by K330i

which covers 90% of the population in the U.S....at least me anyway. i will never clear $250k selling my house. hell i didn't even pay $250k for it...

so unless we have some of the billionaire boys club members on this board then it probably will cover most everyone on here.

and yes most people staying in their primary residence will stay longer then 3-5 years.

My response was to your post that you paid NO capital gains if you sell your primary residence.

I can't help that you live in TN. Here in the Bay area, I have about $700K in equity in my house, and would definitely pay some long term capital gains if I decided to sell.

[K330i]

Originally Posted by MadDog

I can't help that you live in TN. Here in the Bay area, I have about $700K in equity in my house, and would definitely pay some long term capital gains if I decided to sell.

hey, don't feel sorry for me. i just fine where i'm at (state income tax free, $24 auto registration, no vehicle inspection and i won't even go into the gas prices )

anyway, we have plenty of you republic of kalifornia transplants picking up stakes and moving here all the time... so see you soon.

[MadDog]

Originally Posted by K330i

hey, don't feel sorry for me. i just fine where i'm at (state income tax free, $24 auto registration, no vehicle inspection and i won't even go into the gas prices )

anyway, we have plenty of you republic of kalifornia transplants picking up stakes and moving here all the time... so see you soon.

The only problem is that you have to live in Tennessee to get those perks. Not gonna happen.

[Robertbog]

I need to add something to this thread.


Fuck the Internal Revenue System. Bunch of bureaucratic asswhipes.

[SoYank]

Originally Posted by K330i

same situation with your house. when yousell your primary residence for a profit (usually yes) you do not pay c.g. tax.
you only pay capital gains non-primary residence (rentals, etc.) that you buy to sell or rent.

can a tax guy chime in here and set us straight?

Several years ago the IRS changed the rules for capital gains on residences. It used to be that you had a once in a lifetime exemption on capital gains provided you rolled the profits into a new primary residence within two years. When they changed it, you got a $250K/$500K exemption for your primary house provided you had lived in it for at least two of the past five years. You could then claim the exemption every two years. The likelihood of the house appreciating enough in two years, though, for this exemption to come into play would be slim.

I have a hobby whereby my collections increase in value. I have been told by my tax advisor that if I sell any of the items for more than I paid for them I must report this as capital gains to the IRS and presumably to the state (heaven help me if I'm ever foolish enough to move back to California). Same thing applies with the current discussion. If the OP is selling cars at a profit, the IRS and the state wants its share of that profit. Legally you have to report it.

BTW, I am not a tax guy but these are my experiences.

[ideliver]

Originally Posted by Robertbog

I need to add something to this thread.


Fuck the Internal Revenue System. Bunch of bureaucratic asswhipes.

+1