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Discussion in 'Ferrari Discussion (not model specific)' started by Ron328, Sep 20, 2005.
do you owe uncle sam any taxes? Just curious.
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You have to pay taxes on the car you win...not on the sale
Oregon doesn't have a sales tax. Will the amount of tax be based on the car's MSRP? Thanks.
yes, MSRP. The Fed's will consider it income for the year
Unless you sell it in Santa Clarita. The hall of records blew away in the last big windstorm.
Unless you sell it for over MSRP (The amount you originally were taxed on), in which case you have to pay taxes on the gain.
Thank you all!
Good call.. getting rid of the 328.
yea, theres this lottery here in Calgary for cancer research and stuff. Three of the prizes are as follows:
A brand new Ferrari F430 coupe, Aston Martin DB9 coupe plus 50k cash, a Maserati Spyder plus 70k cash. ooo
So you'd sell the Aston Martin and Maserati right? If you're already planning on selling the 430 I'm pretty sure God will prevent you from winning it in the first place.
Why not? Since the sale will be less than the MSRP, haven't you incurred a capital loss of MSRP - sales price?
Maybe prizes are handled differently to avoid fraud (ie: I "sell it" to you for cheap and give you a taste of my resultant tax savings).
I would say you can take the $11,000 gift deduction(if this is a USA deal), but if the car has a MSRP $100,000, you would owe either gift or income taxes for the remaining $79,000.
How is this different than winning Lotto?
If you win $100,000 in Lotto, you have to pay income taxes on it. Just because the payment came in the form or an automobile does not negate the taxes due.
I would propose the reason MANY such automobiles get resold immediately is the winner does not have the ability to pay the income tax. When you win $100,000 in Lotto they take the taxes FIRST, and send you a check for the remaining $50,000. You never see the other $50,000, even though the taxes may not be due for 9 months.
Winning the car gives you 100% of the asset, but you know come April 15th you'll owe $40,000 in taxes. So you sell the $100,000 MRSP car for $80,000, show a $20,000 capital loss on that transaction, so you then owe taxes only on $80,000, so more like $30,000 due and you net $50,000 in the end.
I don't think that you get to claim a capital loss on the sale.If it was a depreciated asset that you sold for less than the book value then yes. It's a car, not an income producing asset. I don't believe there is a gift deduction. That is a deduction from the non taxed part of your estate when you die. If the IRS agent looking at it knows cars, he/she'd know that the Aston and the Ferrari are both selling for more than MSRP and that would be the taxable income to you.
where can I buy tickets?
Lottery wins in Canada are tax free, .....sadly, this is the ONLY advantage we have tax-wise over the Americans....
you are going to receive a 1099 from the charity for the msrp or an appraised amount whichever is more applicable to the item won. uncloe sam will expect his cut. what you do with the car does not matter.
well, I sort of got the prizes mixed up. Its like this
Grand Prize - One Million Dollars
First Prize - Ferrari F430 + 50k cash
Second Prize - Aston Martin DB9
Early Bird Prize - Maserati Spider + 70k cash
not sure if out of canadians can buy tickets, but you can try
"limited to residents of the Alberta Province" Oh well, it was a good thought. Thanks Martin!