Help me come up with a fair price

[BroncoDude]

Screw the capital gains.. the next buyer WILL pay you for what you got in it. Then your dad mysteriously finds an envelope with 10K (cash) in it, which he saw the bronco buyer drop on his way out the door to never see you again.

Then he, for some crazy reason gives to his favorite son (who ordered him a bronco) the envelope as a gift.

"The gift tax annual exclusion amount per donee has increased to $16,000 for gifts made by an individual, and $32,000 for gifts made by a married couple who agree to "split" their gifts, in 2022."

If you have ever wondered why "CASH IS KING" you now know why

FYI
2 Door Bronco's are hens teeth and are gold.... A Wild Trak makes this deal the most sweet of all. That truck is extremely valuable.

In my opinion this truck would be worth in the ballpark of a fairly priced 4 door First Edition!!!
Just my 2 cents

My hen's tooth is only silver, however, I wouldn't sell it for all the platinum in the world. Unless Selma Hayek personally requested it. I'll be in my bunk.

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[Marsalad]

I like the idea of offering to abandon this Bronco in exchange for a deep discount on the next one for a few reasons:

1. It is the easiest to implement, assuming the dealer agrees to the plan.
2. Your tax liability will be minimized because you won’t pay sales tax on the purchase or capital gains tax (as if) on the sale.
3. You will be lowering the purchase price of your Dad’s Bronco and therefore decreasing the sales tax on that purchase.

The negative would be that the selling dealer could potentially say “no” to the plan or they could agree to it and make $10k ADM, which seems to be a sticking point. However, they are assuming all the risk also.

Personally I find the idea of you paying sales tax on the purchase, capital gains tax on the sale, and then the new owner paying sales tax (if that’s the way your state does it, I’m in New York so of course they do) when they register it to be outrageous.

 

[LowerSlowerDelaware]

Screw the capital gains.. the next buyer WILL pay you for what you got in it. Then your dad mysteriously finds an envelope with 10K (cash) in it, which he saw the bronco buyer drop on his way out the door to never see you again.

Then he, for some crazy reason gives to his favorite son (who ordered him a bronco) the envelope as a gift.

"The gift tax annual exclusion amount per donee has increased to $16,000 for gifts made by an individual, and $32,000 for gifts made by a married couple who agree to "split" their gifts, in 2022."

If you have ever wondered why "CASH IS KING" you now know why

FYI
2 Door Bronco's are hens teeth and are gold.... A Wild Trak makes this deal the most sweet of all. That truck is extremely valuable.

In my opinion this truck would be worth in the ballpark of a fairly priced 4 door First Edition!!!
Just my 2 cents

Andy Dufresne Approves

 

[skhubbard93]

I see a lot of comments about generating a capital gains and having to pay taxes. In this scenario I believe that is correct because this transaction would meet the definition of an Investment (an asset acquired with the intent of generating an income or appreciation). However, if the scenario was different and someone took deliver of their Bronco 6 months ago and has now decided it's not the vehicle for them and sell at a profit, would they still need to claim it as a capital gain? What if they sell at a loss, do they get to claim that loss on their taxes?

I know plenty of people (including me) who have purchased an automobile and later sold at a loss, but I don't know anyone that tried to claim this as a capital loss on their taxes.

As a personal item, I don't think you can declare a capital loss on a car. But if the vehicle is owned by an LLC or something, that might be different. In such a scenario there might be a way to take depreciation losses, cap losses, and even business expenses (fuel, maintenance) that might influence your final tax bill.

IANAA, CPA or tax attorney. I'm just stating that it might be worth looking into. If you are interested in learning about this, consult one and find out definitively.

 

[Marsalad]

As a personal item, I don't think you can declare a capital loss on a car. But if the vehicle is owned by an LLC or something, that might be different. In such a scenario there might be a way to take depreciation losses, cap losses, and even business expenses (fuel, maintenance) that might influence your final tax bill.

IANAA, CPA or tax attorney. I'm just stating that it might be worth looking into. If you are interested in learning about this, consult one and find out definitively.

Another reason why capital gains tax on a vehicle is bullshit. You can’t claim the loss that usually occurs with a vehicle sale.

 

[cclkramer]

Long story short. I have 2 Broncos on res (Day 2 res holder). One for me and one for my dad as a surprise. I got tired of waiting on mine but kept the res just in case. I received my MY22 D90 last Tuesday. Yesterday I get a pic/e-mail that my Bronco is ready after zero updates for a couple of months. Unfortunately my dad's is still pending. I was hoping my dad's would be done first, but nope. Also, I cannot give him this one to my dad bc I got him CO (he loves him some orange cars).

So now I have this Bronco that I can abandon and watch the dealer mark-up 15k OR I can buy it and flip it.

I want to flip it to someone (already have someone lined up. He is an acquaintance. So while I know him I dont know him THAT well) with a balance of it being worth my time while not ripping him off.

Just tossing a # out there...... For it to be worth my while of getting a loan and assuming the risk if the buyer backs out, plus having to pay tax on the profit I would make, I was thinking 5k to 7,500. But even throwing that # out there makes me feel like an ass. In the end I still need to get something for the "trouble".

Really wish I could simply have him come to the dealer and buy it from them at MSRP but the dealer already told me they wont allow it since they would mark it up 15k.

Thoughts? Is 5k too much?

Why cant he get the cash for you to buy???? This would save everybody time and money.

 

[seashell]

Not sure of Florida law but if it was in Texas, when your "friend" buys it from you and goes to register it, he would have to pay the registration fee and sales tax all over again. So whatever you decide on your finders fee, just make sure he realizes that he may have an additional $3-4k in taxes on top of your sales amount.

 

[JaxGtc]

Focus on your new toy and the anticipation of your Dad's Bronco. The abandoned Bronco will just cause you aggravation.

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