How Does Flipping Affect This Hobby?

[Ghoste]

All of which really comes back to how do you define "flipping"?  I really think that we each have a someone different connotation here and depending on the individual, some will see it good and others not.
Travis, instead of calling it flipping, maybe you should call yourself a Charger Re-marketer?
The western world (and more of the rest of the world than will admit it) revolves around the trade of goods and services.  I see flipping in a negative way so in order for me to think of someone as a "flipper", they have to be doing something unethical in the process.

[69charger2002]

maybe you're right.. i just don't think i should mask what i do with some made up better sounding term. which i would probably catch even more slack for.. i buy them, sometimes don't even wash them, and make $1000 bucks on one after my trip expenses.. i have always thought of it as just "flipping" a car. especially since i don't keep it a year, do $4000 worth of upgrades to it etc. keeps me from getting attached.. either way i don't see it as unethical, no matter what you call it. i am taking advantage of a good situation when i can. it's very legal, and it is done by millions of americans every day, just in different ways with different things. if it wasn't me, it would be some other guy.. i have never had a person dissatisfied with a car they bought from me, or said that i charged too much. so i feel what i do is very fair, and i don't "rape" anyone when i resell. so it's all good
trav

[Ghoste]

 

[Lowprofile]

pss- Todd's comment is still the most credible and honest reply in this thread. Downplay it all you want.

And why would you think Uncle Sam is entitled to any of that? Don't you think they get enough already?

We all know who the bad guys are in this Hobby ......[and not just MOPARS either] There's nothing wrong with someone making a profit for their hard work. Its a fact that some of us here are much more active in the hobby than others. And some of us here have a knack, if you will , for finding a good deal. [not me... ]  Just think, 10-15 years from now, they'll be hardly any parts left......we in the Mopar community better hope and pray the aftermarket picks the ball up and runs with it. The way it is now, if you own a 55-57 Chevy, A Camaro, a GTO or a Mustang, you can pretty much rebuild your whole car from a catalog.

They never said it was easy to own/love MOPARS!!

[Just 6T9 CHGR]

Travis, come on man...you know I love ya   I had to get in while the gettin' in was good!

PS--Still waiting on my PM's or emails with your registry entries

[Chris G.]

pss- Todd's comment is still the most credible and honest reply in this thread. Downplay it all you want.

And why would you think Uncle Sam is entitled to any of that? Don't you think they get enough already?

They may get enough already, but is it technically legal to avoid reporting a buy and sale of a vehicle? You tell me?

We all know who the bad guys are in this Hobby

PM the list. I still don't know who's good or bad. I hope I'm not on it.   

[Lowprofile]

They may get enough already, but is it technically legal to avoid reporting a buy and sale of a vehicle? You tell me?

We all know who the bad guys are in this Hobby

PM the list. I still don't know who's good or bad. I hope I'm not on it.   

Thats what loopholes are for........So you can actually keep some of what you make.   

As far as a list of bad guys......let your common sense be your guide. 

[nakita7]

i, for one, totally disagree with that statement. do you seriously think that if a person flips 20 mopars in order to keep 2-3 nice ones and have them paid for.. let's say.. that he is not a true mopar lover?? there are a lot of guys on this site that have or are doing this to pay for their cars.. how are they any less passionate?? please explain this to me..

A Mopar guys sees a Charger in an old ladies carport. This guy has 2 cars already, but he thinks 'flip'. He buys the car for $2500, complete and running. He then cleans it up and advertises it for $10,000 obo.

Another Mopar lover, 18 years old, has a 6-cyl Duster, but really wants a Charger. He's drives by the first guys yard and sees the newly purchased Charger in the driveway. Runs up to the door, rings the doorbell and frantically offers the first guy $3500 (his total savings) for the car.

Now...what does the first 'Mopar' guy do? THINK before you answer this one (not directed to you charger2002, open question to all)...

I know what I would do...but then I really could care less if a Cuda was worth $3 million or not and I'm NOT in this hobby to fund other guys' retirement/cars/houses or lands...not gonna happen!

[69charger2002]

you'd be surprised what i would do in that instance.. i am not the devil. if they were truly desiring it, not some 15 year old thinking he wants one.. etc. i would hook him up. 3500? MAYBE not, let's be serious. but i would make it fair and hold it for him if he REALLY wanted it. i've sold about 6 chargers here local because of that same exact thing

[Todd Wilson]

pss- Todd's comment is still the most credible and honest reply in this thread. Downplay it all you want.

And why would you think Uncle Sam is entitled to any of that? Don't you think they get enough already?

Well the way I understand things and some one correct me if I am wrong  I thought I have read somewhere that after you sell so many cars you are considered a dealer.   You sell the old pickup truck or the wifes old car is fine.   You buy and sell 20 cars in 6 months you are dealing and doing it for profit. And that isnt ok.

You personally buy a brand new truck in say 1995 for 20000$   its now 2006 and the truck is used and old and you sell it for 3500$. That money is yours to keep and I do not think you have to report it as income.

You find a 1969 Charger RT 426 Hemi 4 speed thats been in a garage for 20 years and has an inch of dust on it and you buy it for 2500$  and then turn around and sell it for 75000$    then you need to report income on the vehicle.

As for selling parts at a swap meet if you show up 1 time and sell some extra pieces and parts you have had laying around after your restoration I would imagine that would qualify under some form of "hobby" and you wouldnt be required to pay taxes.   If you go to a show every weekend all year and sell parts  then you most likely should be reporting income. You would of course have to add in your expenses to get to the swap meet and a good accountant could probably show most people selling are doing it as a "hobby"  more then as a job. Factor in fuel costs,food and motel charges, Depreciating the vehicle for the miles put on and so on and so forth.




Thats how I understand things to work and maybe one of our law dogs here can verify this and or add the proper terms and language to legally say what I have said with my examples.



Todd

[Todd Wilson]

no offense Twilt, but I could have sold my Charger two weeks after buying it and bought your entire fleet and still have a large chunk of cash in my pocket

.. i for one am not worried about the IRS,i don't owe them any money. most of the ones i flip i haven't even owned.. they were never officially my cars.. all i did was help last seller turn it over to the new buyer.. the ones that end up in my name, about 12 of them, are all still in my name.. and i paid plenty of taxes on those.. i now have 35 people on my flipper video list.. i think chris is being bashful.. i'll get the pm soon though

If they werent officially your cars  then doesnt this make you a broker or some form of consignment?  You would need a license to legally do this and of course your profit from getting a sellers car to a new buyer is income that should be reported? Isnt this in a round about way what a car salesman does at a dealership? He gets you in touch with the motor company and finalizes the deal??!?!



Todd

[69charger2002]

todd.. frankie says.. RELAX.

[Todd Wilson]

todd.. frankie says.. RELAX.

I personally dont care one way or the other but if you are going to do it at least be somewhat smart about it.  You sell 50 Chargers and make 1000$ each in profit and turn around and pay cash for a 50000$ house at some point some one will wake up and wonder where that extra 50g's came from as it wont add up with your W2's. You ever get an IRS audit you could be in for a big problem  Its the same reason why pimps and drug dealers get in trouble for tax evasion. Lots of people do it and get away with it but with the exposure of Mopar sales these days its bound to throw up some red flags.


Todd

[Chad L. Magee]

Todd- You hit the nail on the head about the IRS looking for differences in cash flows to help determine if you need an audit for outside (ie unreported) funding.  I have an uncle who is a tax auditor and that is exactly what he does.  But, you can reinvest the money in another car quickly and avoid some capital gains taxes if you do it correctly.  They were mentioning that on the BJ auction this year about people who sell a high dollar car and then buy another at the same event. The net gain (or loss) becomes taxable then.....

[Brock Samson]

That's interesting...
what gets me are the guys with huge collections that they dont even drive,..
like cool ya got 20 HEMIs and whatever but that sure lowers the avail... driving up prices...
like the wing cars, I guess I'll never have one now... 

[Lowprofile]

todd.. frankie says.. RELAX.

HAHAHA  No Doubt!

As far as all this tax stuff is concerned, the little guy pays more than his/her fair share of taxes. As far as the tax laws go, like I said before, thats why "Loopholes" are there. Just ask corprate America & the way they rape & pillage the system and laugh all the way to the bank......the bank in the Caymen Islands. 

Sorry Guys, I don't mean to get off subject. I have Issues.

[Shakey]

If you have a great accountant you can get by with a good lawyer!