Selling collector cars and capital gains questions.

[69 500]

 I would really like to see code #'s on that law you are talking about,were they can sieze your cash in home.

[Dragon Slayer]

It has been well document on the news about the authority law enforcement has to seize excess cash.  They get to keep it for the police department use I believe, so it is almost incentivized.  What law abiding citizens have to go through to prove it was not for illegal use is pretty steep.

""While the police only occasionally took advantage of civil forfeiture in the early 20th century, it truly exploded in popularity in the 1980s, with the rise of the War on Drugs. In 1984, President Reagan enacted the Comprehensive Crime Control Act, which enhanced the ability of police officers to seize cash from anyone and everyone suspected of a drug crime. The goal was to systematically dismantle the drug world by seizing cash.

In the zeal of this anti-drug atmosphere, the low burden of proof required of civil forfeiture seizures was seen as an asset.

The War on Drugs can be credited with the rise in use of civil forfeiture laws; Via UDPS

Aside from its abuse of civil liberties, civil forfeiture posed a major conflict of interest: the police got to keep whatever assets they seized. This gave them tremendous incentive to, in the words of one cop, "up the seizure game." A 1993 Los Angeles Times article harps on some of these abuses:""


I guess some of you need to start parting out your cars small sections at a time, to limit the tax liability or keep it under the radar/screen. 

[Chargen69]

  When I bought my Daytona in 2003 for 50K the owner wanted cash or bank checks no larger than $9500.00. If and when I sell mine I will try and do the same. (Wingman)   Jay.

in the computer age you have to understand that one time big deposits aren't as big a deal as you think they are.  a series of deposits will get you investigated quick

my wife works for one of the big banks

[thedodgeboys]

My kids are going to hate me as ill let them clean up all this mess I'm planning on leaving them...  ::


Damn shame,

[XS29J]

I love when buyers can only pay you with a check BUT DO NOT want you to WRITE in the sale price on Title...

[Arnie Cunningham]

Hey All,
Although the 1031 loophole appears to have been closed for all but real estate, I just wanted to offer a caution about this particular type of exchange.  My father entered into a 1031 exchange years ago.  The property he sold was free and clear of any "leverage" or debt.  The group offering the exchange didn't tell him he was going to be investing in a leveraged property.  In truth they weren't competent enough to know the difference.  Once invested in a leveraged property (one with debt attached) the investors are responsible for that debt in a strange way.  If the first leveraged property is sold and a second 1031 exchange takes place, the amount of leverage must be the same or more.  If the new property has less leverage associated with it, the IRS considers the decrease in debt to be income to the investor.  In certain cases the investor could lose the entire investement due to the "taxable event" that takes place.
If anyone has more input on this subject please chime in.  I am not an expert, just an observer of what has transpired.
Brennan R. Cook

[RSI700VIPER]

I see that a lot of posts mention the need to keep receipts to offset capitol gains when selling a collector car.  It is my understanding that the documentation needs to be "written."  Several years ago, a buddy of mine was audited by the IRS about the sale of his "real property" which included a number of things including a collector car.  He provided what receipts he had, and a log of dozens of entries that included cash purchases of parts from swap meets, restoration services, and other items which he didn't have receipts for.  The IRS accepted the log as "written" evidence and applied the logged amount to the basis of the car.  Receipts are obviously preferred but not absolutely necessary.