My Hot Rod for Bullion? Is it legal?

So wife and I were thinking of selling one of our vehicles, 1971 Dodge Challenger 440 Six Pack. Question is can we out right ask for Bullion?

 

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i dont see why you couldnt

 

My wife said she was talking with one of her friends and I guess there was some Pawn show she had seen and I guess those guys said it was illegal. Thats why I dont like TV reality shows they mislead people to believing that stuff is real. I cant find anything any where that says anything like that.

 

Honestly I wouldnt sell the Challenger but thats your call not mine, And yes you can ask whatever you want for it be it Bullion or whatever. Beleave I read another thread somewere on here that another guy had done something simular but for much less and got 1oz of gold.

 

by the way, can you post a pic of the Challenger?

 

Well we bought the Challenger to help a friend out, but she has been wanting a Chevell for a long time. So we are at a crossroad. Sale one for the other. but one cost a lot less than the other.

 

Thats the pics I have that I took the other day. Well get better ones but it was in the old garage.

 

I suspect you are asking the wrong question. The real question is how is the sale reported for tax purposes.

Let's say you bought the car for $20,000, sell it for $1000 face value of 90% silver, and then turn around and sell the bullion for $22,000.

You have two ways to report the sale:
1) you bought the car for $20,000, and sold it for $1000 (possible tax loss of $19,000). "I haven't sold the bullion yet, so I don't need to report the gain".
2) you bought the car for $20,000, and sold it for $1000 (possible tax loss of $19,000). You then report the sale of the bullion, showing a gain of $21,000 - a profit of $2,000 for tax purposes.
3) you bought the car for $20,000, and bartered it for $22,000 worth of stuff (I don't know what the forms are like) and show a gain of $2,000.

The IRS tends to frown on the first method because the second part of the transaction tends to be unreported. Which means they may not appreciate the second method - if they allow it, how do they stop the first method?

 

There you go. Thats what I was looking for. I have avoided asking the question for weeks based on the fact that I knew I would not ask the right question. And then I ask and get exactly what I needed to know.

So if I paid $30k and I want to sale it for $35k in bullion. What would be my best option in your opinion. Im scared to ask our CPA and well our attorney scares the **** out of me with a bill everytime I even call him. This is all based on finding a buyer with bullion thats not reporting anything himself, correct?

 

You did the right thing coming here with tax questions.
Those scary CPA's and tax attorneys would give you an answer (the correct one) that you don't like.

 

Your wife's friend probably only heard half (or less) of the dialogue.

Chris

 

While I think highly of both CPA and Attorneys both would've charged me to look up and answer that would've been in a long techinal EDITED~ READ rules! format that chased its own tail in circles just so they could turn around and say let me research this some more and I will have you a for sure answer. Well if I'm going to edited ~ read the rules!! away a4175.00 (attorney) or 67.00 (cpa) an hour I'll save the money ask some peopl on here and if they're close enough we argue about the EDITEDover drinks my treat. So attoneys know enough about the laws that they use expert witnesses all day every day but yet when has an attorney ever been an expert witness to anything. I will stick to the experts here.

 

More often than not, attorneys don't really know the answers. They just know where to find them. It's sort of a "learn while you earn" system at your expense.

Chris

 

I have several in the family, and quite a few clients and even a neighbor wo is an attorney. And some are not people I would ask an answer for anything from. Attorneys know how to interpert the law and great at courtroom manners.

 

It was the "Pawn Stars" where the "Uncle Benny" feller wanted 95k in gold for his 30s Lincoln? , & they paid cash then sold him the bullion. He carried it out in a canvas bag over his shoulder(45-50 pieces)

 

Paying for the correct information upfront by far outweighs paying through the nose later if you should get this wrong because of having decided to rely on approximate information gleaned from unknown sources of no known authority over the internet. Picking a knowledgeable and appropriate attorney or tax professional is one's responsibility because you want to pay for someone to get the job done right. IF you come to deal with an uncomfortable audit or steep tax bill later, you'll very likely get to pay the attorneys and/or CPAs anyway if you didn't employ them from the start. At such a time as that, you'll grumble at getting to pay them even more to help rectify your decision of having risked your filing on less than certain answers. Answers that left you with no recourse because you threw away the option by not hiring a tax professional to do this correctly. If the hired professional were to make a mistake in your filing it would leave you with someone to hold accountable. Those unknown sources online lending you a friendly hand have nothing to be liable for, but you would. Just saying, the cheap route (and perhaps even this distrust of professionals) is perhaps more of a gamble and could result in greater pain in the long run.

I think all the readers here will be interested to hear if you DO end up finding a buyer who pays in bullion, in full or in some large part for completing this potential transaction. It's also worth advising caution in advertising the idea of this form of payment too publicly in your car-for-sale listing with any personal information that leads back to you later. What I mean is, it presents a certain degree of risk to have the idea out there exposing you as a holder of a large amount of precious metals. You don't want to be a target once you have the bullion should ill-doers think you might have it or more of it laying around for the taking. I urge this caution no matter your level of personal security apparatus you could already have in place, because many are want to declare they're covered when reminded of such risks but saftey is often just an illusion we have created for ourselves. Just be smart and be safe out there.

 

I totally understand both sides of the fence. I do not know the law or the tax codes. However I do have a CPA and she does a wonderful job with my taxes every year and an attorney that has been in the family for years. The CPA I know does not have much "experience" when in comes to Bullion it seems from our past conversations so I figured I would ask here. Second if I did ask her she would spend time research and research until she did know and a cost. Attorney great guy, love him to death treated my family with respect always, but he is more corporate with a side family attorney and loves to ask for money. Now mistake any advice taken on this subject would not be considered law in my book but more of a starting point so I know if it would even be possible. I have served multiple terms in the Marines so I know all about Uncle Sam and I also have a hay farm, horse ranch and construction business and my wife has been in Oil and Gas for 15 years and everything thing we do we make sure there is protection, insurance or whatever it takes.

Once again it was a conversation as to a starting point not factual data needed to come to a conclusion. And I will keep you up to date on the sale if thats what we decide to do. As for all the smack talking sorry had to talk smack to my little nephew who will be late reading this but it is still fun.

 

By the way if you ever want to pay a lot in Taxes every year and never see a return, I have a wonderful CPA, thanks Chrissy. I know it's coming!

 

I should have also added that I too would like to see your pics of the car too once it's been rolled out of the garage.

Good luck to you on the sale. :thumb: