emccomas

Too late, the tax people monitor this forum.

Dan Hampton

[QUOTE=Vettebuyer5869;1572736105]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.[/QUOTE]

Well put.

Frankie the Fink

[quote=Vettebuyer5869;1572736105]Those of us that have worked white collar and financial crimes call this "structuring."[/QUOTE]

Was a Director at Dept of Justice in Wash and the Securities & Exchange Commission (retired now). The cost of just proving your innocence can sink most folks.

Unless you are as rich as Ivan Boesky who was having a gold-gilded dome put on his house while he was still in prison for securities fraud.
Or Tiger Woods who declined to be interviewed by police (three times) after wrecking his car (property damage and injuries). Or Ken Lay of Enron who drug out his defense until he died of natural causes....he had $16M in Florida real estate that was untouchable because of the Homestead Act.

Don't get me started...

JohnZ

Bad advice. The IRS thrives on what you DON'T tell them; if what you tell them doesn't match up with what they already know, you've got a problem.

crossram

I don't think this is a item that has to be reported. You bought the car with after tax money and sold it. This is not a capital gain.

stingrayl76

If you buy $30K worth of stock with after tax money and sell it in two years for $75K, you owe long term capital gains tax on $45K. I think it may be the same situation no matter what asset you are dealing.

1snake

If he made money on the deal, it is income and is required to be reported as such. If you help a friend with a project and you are compensated, either in cash or an item, that's reportable income. Just like out of state purchases that you didn't pay state sales tax on. Your state has a form for you to declare those items and to pay the tax on them.That doesn't mean everybody does BUT they are required to.

Jim

67's

Since the deal fell through lets see some pics.

shooter1951

WOW Rick,

With all this advice you're head must be spinning!!

Here's my 2 cents worth. Post that you spoke too soon. The "buyers" wife made him return the car, you returned the cash and you're going to let him "borrow" the car for the next 25 years.

Stingxray

If your a Democrat...... Pay your Obama " Hope and Change" Tax's.
If your Republican..... Pay your Bush "Compassionate Conservative" Tax's.

If your an Independent ( Tea party ) Buy Gold!

knight37128

You are a little late with your "buy gold" tip.

TheSaint

Hmmm... Heard of this secret bank up here in Norway?
Send the money to me for safe keeping

Stingxray

So....... can we trust Chairman Ben Bernanke Paper? ...

Note: Gas prices going up with seasonal weak demand & Unemployment at 10% .... inventory flat? " devalued dollar " $3.10 a gallon here and increasing.

Dan Hampton

You are completely and unequivocally WRONG.

mrg

Per IRS:

Talk about being 'owned'. .. You pay to come into this world and you pay to leave. They say you did it right when the 'check to the undertaker bounces'. ..

Kerrmudgeon

Yah go ahead and bounce the undertakers cheque, and you'll end up a victim of a guy like in the news, or maybe oprah's show, who sold hundreds of cadaver parts for cash, like 4 mil over a couple of years. Guess the IRS is going to be talking to him....in jail.

S2racer

You guys got it all wrong. You just assume he meant Uncle Sam. No No No No, He's talking about his wife. He needs to hide it from his wife! Before she knows hes got it!! Because she will want to spend it on the house, remodeling something that doesn't need it. Before he can run out and buy another investment on wheels. And on top of that he paid $80,000 for it, he last 5 grand on the deal and he doesn't want to lose the rest of it to her.

Tell her the cars in the shop.

Cheers, O

Pilot Dan

Rick, as others have stated you will owe Capital Gains on the difference between what you paid for the car plus improvements and what you sold it for. If the sale did not take place in 2009 but in 2010, you still have some time to see if you can find some Capital losses to offset the net profit. If you have some stocks that tanked, they could be sold and the losses used to offset the gain. It would be best for you to sit down with a qualified CPA or Tax professional to discuss your options. Pay what you owe by all means, it will probably be less than you think.
Pilot Dan

jrs 427

If you sold a 43 year old plastic car for 75k........ buy a couple lottery tickets. Anyone this lucky should have a 1 in 3 chance at millions.
Congratulations on being the Number 1 sales person in America while the economy is falling like a rock. You did real good !

joewill

if you have a legit capital gain, then you file as a basis for the investment the original cost, sales tax paid, insurance yearly, parts and labor that you spent on the car keeping the price up. Improvements you had made to it, yearly plate fees.. costs to advertise, costs to sell, all these increase the basis of your car.. when you sell it, if the price is above your basis then you have a capital gain. the IRS frowns on claiming capital losses on cars due to massive depreciation that occurrs on cars.. but high end corvettes can be used as an investment if you keep carefull records and show that it was used as an investment toward your networth in the end. most folks are upside down on their cars...

put the money in the bank, and tell them why.. simple.. then figure out if you really made money on the car and how much of that 75K is profit.. it is probably not much..

to answer the OP's question. put it in the bank for your next investment... ( another car.. a retirement annuity.. whatever...) .