Fast Jimmy

Ask Tim Geithner, our treasury secretary, who didn't pay his income taxes and got promoted and confirmed by our illustrious congress.

stingrayl76

Well, I really don't know what to tell you about handling your $75K, but you sure attracted a bunch of new friends and very, very quickly.

Glasshole

Up here in Canuckland that will get you more time in the slammer than selling drugs would.......hehe

Bob

Glasshole

We also don't have to pay taxes when we sell a privately owned car however we would have some splaining to do if we walk into a bank with $75,000 cash.

Bob

4440stevesvette

Bought my '65 coupe for $36,000 and it was cash or no deal and he counted out every bill and put them in $1,000 stacks. But I also carry a concealed 45 cal. Can never be to careful out there nowadays!

VonDutch

then make a treasure map so you or someone else can find it someday

chet b

Like my account always tells me, take the money and run.

ragtopman

I guess pics of the 75 large in question would be asking a bit much???

vettefred

Affidavit of fact

I VETTEFRED did not hear, agree or give any counsel regarding this Corvette Forum thread.
Furthermore VETTEFRED cannot be considered an accessory to any criminal action being committed, concieved, purported or enacted. The presence of VETTEFRED on this thread is strictly out of curiousity and he has no way to verify that this action is real, concocted or fantasy.

Sheesh....

Vettefred aka Bleau58 aka John Doe aka I.Dunno

rayvaflav

Hey there Bill, I have the same old '66 coupe but I have taken to keeping $70,000.00 in the glove box. Sure wish that I could find that glove box key....

Ray

Dan Hampton

Casual sale? I am not aware of any State where the gain on sale of capital assets are exempt from taxation. As far as the Federal government is concerned, if you received more than your adjusted basis on the car in question, you have a tax liability at 20% if the asset was held for more than one year and a day. There is no free lunch here. This assumes you are not a dealer. If you cross that line and represent yourself as one---deducting what are deemed reasonable expenses---the more favorable capital gains tax will not apply. The car is nothing more than inventory, much like bread on a store shelf, and any gain on sale will be taxed at the less favorable ordinary income tax rate. You can't have it both ways.

vettebuyer6369

Those of us that have worked white collar and financial crimes call this "structuring."

In case you don't know... just by being "cute" (see above) you could get charged with structuring even if there's no other criminal behavior involved (money laundering, tax evasion, drug sales)... because the structuring alone is a criminal act.

If you get caught up in structuring, especially at the federal level, you could lose a lot, not limited to the structured funds, plus your freedom. Felonies are ugly things.

Federal and state tax fraud and evasion as well as other financial crime are things that people on this forum think are pretty funny, but get less laughable when you are getting booked and they ask you for your belt and shoe laces.

vettebuyer6369

You are confusing the concept of a casual or "occasional sale" as not being subject to SALES or excise taxes. The key here is likely the capital gains he would owe, federally.

To oversimplify, if he bought the car for $30k, and sold it for $75k, he would owe capital gains taxes on his US1040, reported on a Schedule D, after subtracting improvements and expenses. And no, there NO provision for spending it on another car, like a principal residence home. Its all taxable.

StingU2

If the car sold for more than what he originally paid, then he would need to report the profit as a capital gain. So, I would have to say the Tax Man will cometh!

PAmotorman

i spent 3 days a month for 30 months on a federal grand jury investigating this type of thing,tax evasion and let me tell you they will get you. i learned a lot of what not to do while on jury duty. the mrs was a title clerk for a dealership and they were required to report any cash sales totaling $10K or more from one person in a 12 month period. i know of one person who lost 3 businesses because of tax evasion

goodwood67

Didn't Pres. Bush eliminate the capitol
gains tax along with the death tax.
I may be mistaken .I think he lowered it.

PAmotorman

he lowered the capital gains but obama is going to raise it back up. he did away with the death tax but it come back in 2011 so die this year. the libs in congress would not pass it unless it was allowed to come back. that is why i say to die poor is unfortunate but to die rich is stupid. Yes, the estate tax is repealed, but only if you live until 2010 and then have the good sense to die during that particular calendar year. That’s right. If you die in 2009 you will pay estate tax if your estate exceeds $3.5 million. If you die in 2010, you pay no estate tax, no matter how large your estate. For those dumb enough to die in 2011, the current estate tax that we now know and love is back in full force! this is the hope and change you voted for

vettebuyer6369

No, capital gains are alive & well.

I bought and sold a car in 2008 and reported every dime I made on it. Schedule D. Take every subtraction, though.

And like PA alluded to, it is NOT worth stealing the tax on a few thousand dollars for what it will cost you.

vettebuyer6369

It might be the hope that they voted for, but you can keep the change.

DICBYRD

SPREAD the WEALTH