Mecum GT 500 fb broke $200 K

[2112]

https://www.mecum.com/lots/AZ0321-453809/1968-shelby-gt500-fastback/

And who thought there would be no more fastbacks over $200 ?  And it needs help in many areas...

$209 K with fees.

Of that $209K........ how much does the IRS take and is there any loop holes that you can use to keep it all?  If the IRS takes 35% then you just sold a Car worth $200K for less than $139K.

Yeah, but you get to write off all the losses you had on cars that deprecated.


Oh, wait.......

[Coralsnake]

The same car was for sale at Gateway Classics a year ago with an ask of $150,000

We can assume that was full retail plus a kicker. I wont rule out shenanigan's of some kind here? ...or maybe someone just wanted a cool car and didn't care about doing a little research. There are some things I would certainly have an interest in even if the price was a little higher than full retail.

I fully understand not everyone is confined by monetary constrictions and not everyone places a high importance on originality/correctness.

[shelbymann1970]

Max Tax is 28%. I paid 25 percent on my last one. 
That is the Profit made you pay tax-not the full selling price(unless the car was free with no auction fees)
https://www.irs.gov/taxtopics/tc409#:~:text=Net%20capital%20gains%20from%20selling,at%20a%20maximum%2025%25%20rate

[Vernon Estes]

Max Tax is 28%. I paid 25 percent on my last one. 

Now that this is a tax discussion..it is important to note for everyone's info that the 28% "max" cap gain rate is otherwise referred to as the "collectibles rate". Even though we all refer to our cars as "collector cars"....they do not fall under the IRS's definition of a collectible object and are not subject to the 28% rate. In fact, there are codifications in tax law specifically written to clarify that automobiles are not "collectibles".  I am sure many people pay the 28 instead of the 15/20 rate simply because they see the car as a "collectible" object...and the Fed will all by gladly accept your generous donation...

In terms of "loopholes"...this phrase is always an interesting one for me. Seems to originate from a media which villainizes people for following tax law to its intended purpose..and selling that lie to a public which always loves a good scandal. Sells the rags, so why not? There are no "loopholes" when it comes to dealing with the tax man. There is following tax law and there is not following tax law. Most "loopholes" people refer to have to do with taking depreciation on real property...which does not come free. It all gets recaptured at some point. There is no magic "loophole" where someone's tax obligations just magically vanish. 

Kind regards,
Vern

[Rukiddin]

My tax guy put it simple... you NEED receipts to offset capital gains (or loss) since many of us put their own labor (not deductible) or buy at swap meets,etc , you can't justify the profit/loss. I thought I made a few bucks on a sale of a car I had and restored over 25 years until IRS wanted RECEIPTS. I had virtually no records and paid tax on pretty much the entire amount! My tax person won't even discuss "loopholes" or dishonest records. Start your resto business today and document EVERYTHING ,from tools to floor sweep to building expenses/utilities % . You have to play by their rules ,but it can be done.

[427heaven]

A new era of, "One just like it went for, (insert stupid price here), mine got to be worth that!" This has been going on forever.

Many "happy" people at BJ and M auctions, ebay will be in the mix also, but it is not that much fun drinking in your easy chair as opposed in front of a camera on speed week....Auction your car off with a super high reserve, like a MILLION, with a opening bid of 1.00, see where it ends up, (TMV or True Market Value).

So true... Its been going on for a very long time, and will continue to do so. Only thing that changes are the people and the prices. Remember a few years ago some people would say can you believe he paid 10-15 k for a SHELBY or 25-30k for a real 289 COBRA I remember those days very well. If it was rare and desirable 50, 60, 70 years ago it is even more so today.