GrantG

You may be right, but I assume a VIP might have a pretty high tax return profile and the acceptance of that risk certainly adds to the value of the “favor” to the flipper.

Justaroofer

Are you surprised? I'm not.

Yeah, because theres nothing truly special except the hype.


Buys the car under Montana LLC, distributes the asset to owner, owner the sells the car back the the LLC (on paper) for distribution price and LLC sells the vehicle at a profit and reinvest the funds.

Never once do any laws great broken and straight across the board profit.

disden

couldn’t be more wrong. Drive one back to back against your Touring (which oddly you paid more for than my ST) and you will be shocked. It’s not a parts car as you always spout. I have been critical of the 992 GT3 so I am not a rah rah Porsche is always the best person. But my word the ST is miraculously good.

Justaroofer

Hype was referring to the market value and speculation. I think its a solid piece for your end goals. As I have always said, at its base price point its worth for those that seek it.

PTS

That's what a few douchebags will do*

Many of us will drive them as intended

GrantG

Sounds like a realized taxable gain by the LLC (for starters).

Justaroofer

Not when you reinvest into other avenues of the business.

GrantG

That’s not how taxes work. When you realize a taxable gain, it’s taxable for that year. Doesn’t matter what you decide to do with the money (with some very specific exceptions, like selling a primary residence to buy another primary residence within a short period of time).

WernerE

Yeah, there’s no Like Kind (Sec. 1031) exchange treatment available for cars…lol. Also, Sec. 1031 isn’t applicable for primary residences either, as Sec. 121 applies and allows a tax exclusion of $500k for joint files, provided you’ve satisfied the holding period.

Justaroofer

Guys yall are talking personal tax code and realestate. This is basic P&L speak essentially. Business taxes are incredibly different and complexity is very high. Why do you think so many car collections are established in their own structured entities? They're personal collections sure, yet they're run as a business. Same reason alot of these mega collections literally are warehoused in a section of building owned by an entity that the same owner of the car collection owns. The will literally rent to space to themselves. Moving money in circles. Its a bull**** shell game. Take this strategic real-estate play by Golden Gate as an example. Literally bought all of the assets of Red Lobster. Started sister company that then bought the real-estate RedLobster owned. Then leased the same.spaces back to itself(redlobster) at an inflated unmanageable lease figure with tactic to collapse redlobster. Milk their profits. Then walk away with the profits and the real-estate for other ventures. https://www.fastcompany.com/91129776...private-equity

Private equity firms primary focus is the above.

I respect the posts though! For example, the tax rules you speak are exactly why the middle class is a dwindling breed.

Unfortunately the US tax code is slowly slipping to a structure of Oligarchs right in front of your eyes. They structure the rules to their and their interests benefits. Rich get richer, poor stays poor, middle class just tries to hold on with hopes to go to one side and not fall to the other. W2s equate to modern day slavery and starvation of hope. Give you enough to get by, while keeping you hungry(not starving) for more.

usctrojanGT3

There is a little window where you can do a 1031 exchange and still get your $500k gain exemption on a primary residence (need to rent it out for 2 years but sell it before the home was converted to a rental), so you get the best of both worlds. I have a few clients who you've taken up my advice to do that on their departing primary residence.

fester

yep but lets see in few yrs given the direction Porsche is going..

GT3

Dakar and GT3 RS is the best combination. ST is nice but not a substitute.

993RR

All 3 are all the 911s you need. Each one with a different use case and at top of its game in the relevant sector.

GT3

Definitely would be nice to add the ST, and maybe will, manual. But, like anything else, but not sure if it’s $500k worth it. But would be nice. We’’ll see.