ToasterThief

What gauntlet has been thrown down? It's YAGT3F (Yet Another GT3 Flip).

Addicted-2-Speed

Perhaps...

uberm3

Best "for sale" - evar!

iphilips

So what are the tax implications to Mooty as the flipper? Does he have to pay capital gains on the profit?

GrantG

gago1101

Exactly!
As much as Mooty wanted to sound like a flipper, he is not. He paid about 17K for tax and registration. Add the PPF, this car cost him more that 205K. So he still loses 5K on this deal, and I think it's all for fun.

iphilips

Not to mention the cost of money for the period he owns the car.

What's the value in this for the flipper? I could think of better things to do with $205k+ if my goal wasn't to own the car.

mcsmcs1

As I understand it, sales tax and registration are not added to his cost, so he paid $180k for the car. I am not sure if you can even include gas guzzler tax in the basis, so let's just say basis of $180k. Maintenance costs do not add to basis either, but improvements do so let's add the clear bra to the basis which brings us to $190k roughly. Let's assume he sells it for $200k and therefore produces a capital gain of $10,000 taxable at ordinary income rates up to 37% as it is short term as held 1 year or less. He will also owe CA income tax up to 13.3% on the amount and the 3.8% net investment income tax.

mooty

mooty

CAlexio

So if I understand this correctly, "Mooty'ing" a car is same as "Martin'ing" a car except with the addition of California registration instead of Montana, apparently less angst and more acceptance from the Commentariat, and no pictures?. Also something about wiring money vs Venmo and maybe a few completely unintentional spelling errors thrown in for that authentic "Mooty effect". What am I missing?
The real question I have though, is which method holds better resale value over time?


I've also been considering issuing a cryptocurrency offering token investment once in a lifetime opportunity amazing deal.. maybe will call it "CALEXIO ICO".. if you invest you can have access to shares of GT cars at below-market prices, all cars will be investment-grade PTS colors, delivery-miles or less, all the best options. Of course each one must be shared "comrade-style" with all Rennlisters on the blockchain. This means that you hold all other part-owners accountable for not tracking the cars, and not driving them except during high-profile occasions like C&C. There will be a "for-sale" sign posted on the windshield at all times. Each time a car is sold to a new owner, the selling price will be higher, and all investors in the ICO will make money on the margin (minus Cayman Islands registration fees, bank fees, trust creation fees, foreign transaction fees, "2 & 20" General Partner fees, and of course, tire-shine cost. The fund closes when everyone in the world has invested and profited, with funds distributed according to seniority and # of posts on Rennlist. ICO regulations-will be managed by Chicago Whale. Final jurisdiction over disputes will be handled by Chousoul, ER mclarendad, er.. CJ Ichiban.. errr, oh fudge nuts. investors will be paid out for every new token issued in the form of contraband bobblehead dolls, which will contain a secret code under the base written in FXZ language.. if you see the word "CONFIRMED", then you win.. err.. something.



Now, back to occasional lurking... because what else is left to say?...

signes

Same lovely situation here. Same car taxed as many times as there are ownership transfers but never can offset gains w losses! It's enough to drive one to register in a tax friendly state like MT.

Wait...

mooty

CAlexio u are onto something, i may have to invest in your crytocurrency.
if i can only understand blockchain....

signes...
tax... i love tax....
this loss on GT3T is not bad, i have way dumber mistakes.

2011 i ordered one of my 4.0 new
sold in 2012 and PROFITED (IMAGINE THAT): $20K NET.
i was happy as clam
day 3 i think, i had suicidal thoughts. so bought it back at 80K more than i sold for it.
and pay 9.xx% tax and reg on the ENTIRE amount i just paid for the car, approx $30k
so in one week, i lost about 100k

my 86. it's really cherry, what i mean is that it may very well be the top 30 86 911 in existence
it's just a coupe, not turbo nothgion special
but i paid a lot for it
then sold it
then bought it back for quite a bit more than i sold for.
then paid 9.xx% tax on roughly 100k purchase price.

u dont want to know how much i lost on my GT4, GT4CS and others... damn, in fact now i realize why i can only afford ramen and junk food ....

anyways, carry on and have fun
time for my late night ramen.

usctrojanGT3

haha

mooty

SOLD, thank you RL.