Is An Antique Car A Collectible To The Irs

True antique cars also have more history and cultural significance.

Is an antique car a collectible to the irs. Collectibles are considered alternative investments by the IRS and include things like art stamps coins cards comics rare items antiques and so on. Because your intention is something that hard to proof there might be a risk case of auditthe IRS agent disagrees with your interpretation and you might need to be prepared to provide adequate documents if you claim a loss. Body Style and Flare.

The IRS claimed that the expenses were not made with the expectation of profit. People collect all kinds of different things including stamps art sports cards jewelry coins and cars to name just a few. The IRS lists the following as collectibles.

Cars particularly classic ones have always been a popular collectible. Collectibles include works of art rugs antiques metals such as gold silver and platinum bullion gems stamps coins alcoholic beverages and certain other tangible properties 1 What makes something a collectible is that it carries additional value based on. To deduct the classic or antique car 1.

A car may be a collectible in terms of subsection 108-102 if it is an antique. Although the taxpayer claimed a profit motive he admitted that he knew nothing about car restoration and personally did very little work on the T-Bird. Many individuals have substantial investments in collectibles such as art stamps coins autographs books maps baseball cards glassware antiques gems jewelry or wine.

If collectibles are sold at a gain you. Furthermore they claimed that the expenses were capital in nature and not deductible. However there several tax issues.

Speaking of collectors collectibles can be a great hobby but they can also draw the attention of the IRS one of the greatest collectors of all time. In these situations the taxpayer could spread the recognized gain on the sale of the asset over multiple periods by entering into an installment sale agreement with the buyer. The government relied on a tax regulation that stated that normal repair costs can be deductible as an expense but those costs that either added to the value or prolonged the life of the asset the antique cars were not deductible but should be capitalized and.