Easier said than done in a lot of states. I'd love a dealers license but In Michigan I need to have a contract with a repair facility within 10 miles of my location or be a licensed by the state repair facility with all the mechanic licenses which is just a money grab by the state. Then a physical location that's zoned commercial and so much more BS in order to get a license. They make it difficult on purpose.
It's a lot easier in FL. You do have to have a physical location that is not residential, but it's pretty easy and small square footage requirement and warehouses are pretty cheap here.
After a year long term gains rates may apply, but yeah still ya should pay otherwise they'll Not the same thing. Cars are not recognized same way securities , collectibles and some other investments are by the IRS. IRS assess vehicle appreciation at ordinary income rate. I suspect the only up tick in cost basis you an get with an appreciated car value is the cost of furnishing & installing permanent material in it if done so. ie , repair of a damaged vehicle, but I'm not sure.
My buddy is trying to get me to use my 15,000 sq manufacturing facility to partially fake as a dealership for a dealer's license. I don't really know how it all works, and frankly, I'd rather not deal with the extra headache. He's got about 20-30 cars for personal and just likes to buy and sell to try new cars as a hobby. Main reason he wants to do it is to simply save on Sales/DMV Tax on a purchase (10%) and annual registration fees. Luckily (or unluckily), I don't have these first world problems. Mo' money mo' problems .
I never had a dealer's license in CA but I did look at it maybe 20 years ago. I think all of this can be found online.
You must have heard the Beatles song - The Taxman, and yes they do tax gains on a car sale! Not sure if it is cap gains or ordinary income, would repairs/upgrades serve to increase the basis in the vehicle and thus reduce the gain on sale? It would seem logical but who ever said tax laws were either fair or logical.
There are tons of articles on the internet about this. https://groco.com/article/the-tax-side-of-dealing-in-collector-cars/ is one for example. The only issue is that the IRS has never come down on whether cars are collectibles. And from Keith Martins Sports Car Market