73911

If you have three or four Porsches where are they going on your demise?

What are the tax liabilities for your family This is the first in a series of articles that deal with passing a car collection on to the next generation.

Richard Newton

mk85911

I can't speak to the tax issues, but I have a different concern re inheritance. Specifically, I'm concerned about passing my 1985 911 on to any of my children because they have grown up accustomed to stability control vehicles and as we all know, an older 911 can get the inexperienced inserious trouble. And since they are not even competent manual shift drivers at this point, it's not a simple matter to get them squared away on the car. In fact, it occurs to me that taking them out for a serious back road run could put me in the inheritance situation a little sooner than I would like. Mike

theiceman

That's actually pretty funny.

In Canada title can be transferred to a spouse or child tax free so no issues.

User 4221

Place all the collector cars in a trust. The trust passes through the family avoiding taxes.

Now, if one doesn't trust his family with his beloved cars, then that is a separate issue that should be addressed while still upright and converting O2 to CO2.

canuck964

Sorry iceman but even in Canada the MAN will get their pound of flesh in the form of income tax.

http://www.taxplanningguide.ca/tax-p...ital-property/

"Profits from the sale of almost all capital assets, with the exception of your principal residence, are subject to tax as a capital gain. Unfortunately, losses from the sale of most personal capital assets are not deductible.

For example, if you sell your boat or car at a loss, you cannot claim it as a capital loss. But if you sell it at a profit, half the gain is taxable (see topic 134). With the exception of certain donations (see topic 81), assets that have a cost of $1,000 or less and are sold for $1,000 or less are exempt from this rule. However, assets that cost less than $1,000 and are sold for more than $1,000 still face a tax bill on the difference between their sale price and the $1,000 cut-off point.

Losses from the sale of certain types of personal property, referred to as listed personal property, can be applied against gains from the sale of such property. Listed personal property includes coins, stamps, jewellery, rare books, paintings or sculptures and similar works of art. Listed personal-property losses can be carried back for up to three years and forward for up to seven years, but they can only be applied against gains from the sale of similar property."

The vast majority of Canadian never make any money on their cars but if they do it is taxable to the extent the cost is over $1,000. Most of our 911's are over that threshold.

Iceman you are correct as far as the actual transfer of title is concerned. Here in BC you can transfer title between parent and child without the provincial sales tax.

Sorry eh.

racerbvd

Well, if my Mother is still living, she will get them, if not, then my cars & parts will be sold & the money to my Masonic Lodge & to local No Kill animal shelters, with the animal shelters betting the bulk. All but my 76 914, that will go to a diseased buddy's Granddaughter.

race911

Of little concern to me, as I won't be around. Right? Though likely one will be destroyed in whatever mishap takes me out.

911Dave

Cars are personal property, just like your clothes, furniture, and all the other junk you own. It all goes into the valuation of your estate. In the U.S., if your estate is valued at 5.5 million (individual) or nearly 11 million (per couple), neither your estate nor your heirs will owe one dime of estate tax.

As for probate, as long as you have a valid will, your estate will be probated with a minimum of fuss and expense, and your estate will be dispositioned pretty quickly. If you die intestate, the probate process can take a loooong time and be very costly.

Assets held in trust do not pass through probate, but again unless your estate is very large (see first paragraph) there is little value in using them.

State laws vary, so the above may be different for you.

Freddie Two Bs

I have two little daughters, I'm praying at least one of them grows up to be a car girl

GTgears

Richard,
Why do you have multiple log ins? Isn't that against site rules?

73911

I'm not sure what you mean by multiple log ins? I think I only have one.

BTW - When my son got his driver's license I sent him to Skip Barber school at Lime Rock. He still smashed up one of my cars though.


Richard Newton

theiceman

yeah my son went to Porsche driver training yet still bounced the back end of my car off the guard rail and spun out on the highway .. he could not possibly understand how it happened as he is the worlds greatest driver ..

weird how that stuff happens.

911 Rod

My plan was to get buried in my car .....

grgallo

it is a point of contention in my household, not that my 2 qualifies as a collection worth boatloads of money, but if i go, i'd like to leave 'em to my brothers, but... i'll stop here to protect the innocent.

73911

One of the real issues is who have the space for our cars? Do we need to leave them a 3 car garage as well?

Richard Newton