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emc011075
emc011075, Tax adviser
Category: Tax
Satisfied Customers: 2320
Experience:  IRS licensed Enrolled Agent and tax instructor
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Wire transfer.

Customer Question

Wire transfer.
12 years ago i was given an old car from my mother. My father had passed away and mother didn't want the car in her garage anymore.it was received as a gift. Fast forward 12 years and two months ago I found a buyer in England who was willing to pay 200,000$ for the car!
The money was wire transferred to my account and the car is sold.
What is the tax implications on this situation?
Thanks for your advice
Submitted: 1 year ago.
Category: Tax
Expert:  emc011075 replied 1 year ago.
Hi. My name is ***** ***** I will be happy to help you.
If you sell appreciated property, you may have to pay capital gains. You will figure out capital gains by deducting your basis from the selling price.
Now, here's how you figure out the basis. It looks like your mother inherited the car from your father and than gifted it to you. Your basis in the car will be fair market value of the car on day your father passed away plus any expenses associated with the sale or transfer of the car to you.
If the car is classified as collectible item, your capital gain rate will be 28%, if not your capital gains rate will depend on total income and your tax bracket.
Any questions?
Expert:  emc011075 replied 1 year ago.
I see you read my respond but didn't get any feedback. Do you have questions or is there anything else I can help you with today?
And if this answered your question, please take a moment to rate my response so that I may receive credit for assisting you today. However, if you need clarification, or want to discuss this issue further, let me know. Thank you.
Customer: replied 1 year ago.
I really didn't want to get a response from someone at hr block. I would have never done this if I would have known.
Expert:  emc011075 replied 1 year ago.
I am an Enrolled Agent. http://www.naea.org/taxpayers/what-enrolled-agent
It just happened that I also work for H&R Block during tax season as consultant and adviser. It doesn't make my answer incorrect. Sorry for disappointing you, the question was posted for tax experts to answer and I am one of them.
Customer: replied 1 year ago.
This was a waste of $32. I have found the same answer you gave me word for word online. Cars are not considered collectables look at the definition of collectables in the tax laws and cars are not a choice even though there are millions of car collectors.
Expert:  emc011075 replied 1 year ago.
I will opt out, hopefully somebody else will give you more satisfactory answer.

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