Deal or No Deal

[i10fwy]

We have discussing 94 TT ZR-1's compliance issues. I know many of my COG friends are in a position to do this and the benefits can be a lot of fun for the avid car guy. Get your "DEALERS LICENSE"

Currently, I only have 5 cars (2 drivers & 3 in the garage covered) so it does not make sense for me. But, If I had a larrge collection 15 to 20 cars I would do this. Here is just some ideas whay it could make sense for you if you like to go to auctions or buy/sell 6 to 10 cars a year.

1st Dealers don't pay sales tax, they collect it.
2nd You don't need to emmission or tag any cars in your collection. That is the buyers responsibility
3rd If you want to drive one of your cars you just put your "Dealer Plate" on it and go.
4th Insurance, you don't insure each car, you have a commercial blanket policy.
5th Write-off! We all want to make money on a car, but sometimes you don't

If I had my dealers license and wanted to buy this car, no problem! If I ever want to sell it, it is up to the person buying it to figure out what I figured out.

Just something to think about!

[jonstr]

This also is not really make sense for me right now, but I've always been curious about this. What does it take to get a dealer's license?

[i10fwy]

This also is not really make sense for me right now, but I've always been curious about this. What does it take to get a dealer's license?

Here, not much! The biggest issue is a building, for a larger collection you need one anyway. For me, I would just move my business into a office/warehouse type of property. I could run my business & mess around with my cars at the same time.

The write offs would be great too, a RV, a Truck/Trailer, Tool & Equipment. Capital Equipment depreciation!

I better stop or I will talk myself into getting back in the business

[Dakota Aero]

Don't forget the tax collector! I have represented horse guys, drag racers, auto restoration shops, motorcycle racers from the IRS against hobby loss audits very successfully. The key is to demonstrate you started with the intent of making a profit, even though you have unexpected losses, and there is an element of recreation and personal enjoyment. If you keep good records, seek expert advice change your business strategies and make adjustments to counter market forces keeping you from achieving profits, etc.you will help yourself. There are 9 elements the IRS looks at to determine whether your losses are deductible or just a hobby.

I recommend you start a venture like this with these elements in mind, create a written business plan and adjust it each year. So you can take those write offs with more confidence that the IRS will less likely take it away.
Good luck!

Of course if you have a profitable dealership in which you can bury this in it is a lot easier!


DA




DA

[Jeroenvgfn]

I would say deal but my wife would not let me own more than 2 cars

1. must be a family car
2. no restrictions unless we cannot afford owning it.