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warsky

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Everything posted by warsky

  1. No worries, it is confusing. Now does anyone have any idea if I can use the cost of the storage unit I used to store the car to adjust my basis? I would not have had that expense if not for the car, and leaving it outside would have certainly reduced its value.
  2. Thanks for the info, but unfortunately you assertions are incorrect, and technically even that bankrate.com link is incorrect, or at least it makes an assumption that is not clear. Here's the part of that irs.gov page you linked that applies: What if I sell property that has been given to me? The general rule is that your basis in the property is the same as the basis of the donor. For example, if you were given stock that the donor had purchased for $10 per share (and that was his/her basis), and you later sold it for $100 per share, you would pay income tax on a gain of $90 per share So, when my grandfather gave me the car, I didn't have to pay tax. However, in addition to getting the car, I got the basis for the car, which is what he paid for it in 1946. Alas, I don't know what that was, nor have any proof, so the basis is $0. Thus when I sold the car for $12,500 the total gain is $12,500. The value of the car when I was given it does not apply. It only applies towards the gift limit. I'm guessing that in the bankrate.com example, there is the assumption that this is a newer car and that the mother originally paid more than $8500, so the basis is $8500 or more. The site is actually wrong then because the daughter would receive that basis as well. So, if the mother paid $11K for the car, then gave it to her daughter and at the time it was worth $8500, then a year later it appreciated for some reason (think VW camper vans) to $9500, she actually would owe no tax because the car declined in value from the original purchase price.
  3. It shouldn't, but alas it appears to.... I will do more research and mention your modified comments to the accountants. Thanks. The car was never meant as an investment, either for me or my grandfather, so to get nailed with a $4500 tax bill is pretty brutal.
  4. Thanks for the info, but its not an estate issue. The car was given to me 8 years before my grandfather's passing, so his basis was given to me at that time. It's kind of messed up really, if I had inherited the car at his death then you are right, the basis would be adjusted to the value at the time of death, but since he was alive, I get his basis. If he had sold the car and given me the $12,500 as a gift instead of the car itself then it would have fallen under the gift rules for close family and I would not have a tax liability either. Of course he would be liable for the gains, but his bracket was presumably much lower and I believe the tax is actually the minimum of 28% or your tax bracket.
  5. Update: the car is sold. Though the buyer has yet to pick it up, he has paid, so I think its pretty much a done deal. Since its rather easy to find asking prices, but not so easy to find final selling prices, I thought I'd share. I listed the car on hemmings at 13.5 and got many interested parties, with offers all over the place. After a few weeks it settled down to three firm offers, two at 12.5k and one at 14k. The one at 14k was from Europe, and as a sentimental car, I just didn't want to send it that far even for the extra money. So, it went to someone rather close (600 miles) for $12,500, delivery not included. Of course after I accepted the offer, and over the thanksgiving holiday I got quite a few more interested parties, but I am happy with the settled price. I believe that a lot of the appeal of the car was the long family history, and that drove the value up significantly. The fact that its the rarer roadster didn't hurt either. Alas, after completing the sale, I found out that I have to pay capital gains taxes on the sale. Since I have no basis (who knows what my grandfather paid in 1946, certainly not much), I'm responsible for 12,500 in gain. And since its a collectible, the tax is 28% plus 9% for oregon, so instead of $12,500 I'm going to net $7875 unless I can find some expenses to increase my basis. I'm still trying to determine with the accountant if the storage costs can be used.
  6. I've had some interest and created an email to make it easier to contact me. Anyone interested can email at: car@azeotech.com. If I don't email back within a day or two, call me as well and leave a message that you emailed so I check my spam folder.
  7. Thanks. #3 is probably about right. I think the appraiser also looked at what it would take to fully restore and how much it would be worth then. As for what someone actually paid, I see a 1920 4 dr that sold on ebay for $15k about a week ago. Its definitely in better shape, in terms of the top, seats and paint job (though the paint on mine is actually not bad, it just looks bad in the photos because its dusty), but not much else from what I can tell, and I can't imagine those improvements run 9k. The roadster also appears to be a bit more rare than the 4 seater version (which I see a lot of). But either way, as you say, its only worth what someone is willing to pay for it and I never really expected to get what the appraisal said, but it was a starting point. I want it to find a good home, preferably to be restored, and am open to offers.
  8. OK, appraisal is in, and I've posted a new thread to sell it. Please see: http://forums.aaca.org/f126/1921-studebaker-special-6-two-seater-361357.html
  9. I have a 1921 Studebaker Special 6 in the two seater roadster form for sale, located in Southern Oregon. It was purchased by my grandfather in 1945 and he drove it around near his property in rural upstate New York, keeping it in a garage for most of this time. I acquired it 13 years ago and transported it out here. Its mostly been sitting on jackstands in a garage since. It runs nicely, though right now it is drained of gas and water. I unfortunately do not have the time or skills to give it a proper restoration and hope to find someone who does. It is the quiet unique and hard to find two seater roadster variety of the special 6. Includes some spare parts, original manual as well as one for a similar era Studebaker, and a reproduction shop manual. I just had it appraised and am asking the appraised price of $13,500. You can find the appraisal report with pictures and details at: www.azeotech.com/greg/studebaker.pdf. Please contact me at 541-512-4747, or through the personal message part of this forum if you have questions. This is my business telephone number, but you can leave a message and I'll get it.
  10. Thanks. Anything helps, though its hard to tell the condition with one picture. Seems inexpensive if the person from this thread got anywhere near $6k for just the chassis. That '24 looks quite different than mine. Not only is it a 4 seater instead of a roadster, but the chrome is different, it has a single pane window, and the hood is more angular. Maybe that's just how things changed in 3 years... I had it appraised on Friday and should get the result this week.
  11. StudeBig6: if you don't mind me asking, what did you end up getting for the Stude? I ask because I have a 1921 Special Six and I'm trying to determine its value. Its complete (engine, chassis, etc) and a two seater so not exactly an apples / apples comparison, but your experience would give me a starting point. I'm also getting a professional appraisal tomorrow. Feel free to message/email me if you don't want to post the price publically. For everyone else, here's a picture. I'll probably put it up for sale very soon and will post lots more pictures then under a separate topic. Anyone interested please contact me. Its in driveable condition and been in my family since 1945. I really would prefer it go to someone to finish restoring than get chopped up for a hot rod (which is typical around here).
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