Buying A NEW Cobra. Rough Guide to $

[Merv and Sharon]

No Col, Sharon would not do that I suspect. I have receipts for about $35,000 and I was thinking that could be acceptable. Will see whenever I get there!

Merv

[Philm]

Mat,
Sounds like your are working out how much you will put on the window when you sell it.

Phil

[spookypt]

Not necessarilly PHil... One thing we ALL must be wary of IF we sell is capital gains on vehicle sales as it equates to income. If you can prove it has cost you more than your selling it for then no tax applies. But if it has only cost you 60 and you sell it for 100 then wamo your up for some hefty tax bickies.... And yes, THEY KNOW!

In relation to my circumstances, there are a few options on the table... BUT like most things I own....everything is for sale at the right price.

Be as it may, if I did ever sell my car...seeing what I have seen up here with other car sales a k+ price tag would be about the money IMO...

SpookyPT

[Tenrocca]

There appears to be a bit of a huge discrepancy between what a manufacturer charges for a turn key, and what one can expect for a second hand vehicle, even if in top nick. I think Greg Neilson had his CR for sale at less then half that of a turn key CR from the factory. It does have a unique colour scheme, but paint was good enough for best paint at the first nationals it attended I think and it would be a low K car.

Richards superformance was a bargain.

[Wazza]

Not necessarilly PHil... One thing we ALL must be wary of IF we sell is capital gains on vehicle sales as it equates to income. If you can prove it has cost you more than your selling it for then no tax applies. But if it has only cost you 60 and you sell it for 100 then wamo your up for some hefty tax bickies.... And yes, THEY KNOW!

Sppok,

As far as I know the capital gains will only be a worry if you've bought the car in a business/company name, and have it on the balance sheet as a company car.

Otherwise, a sale of a private vehicle does not attract Cap gains.

My bumblebee was a "company" car....the new one is not...for that reason.

Check it out with your accountant though to make sure.

Cheers,
Warren.

[sambo]

Here's an Autofkraft (UK) Cobra for sale in QLD for over $200k. Very tough stance.

http://www.carpoint.com.au/used-car/...sn6962263.aspx

[Philm]

Just having a bit of fun Mat.

You have raised an good issue, market value compared to replacement cost.

I have insure my car for a replacement value but I am sure I could not sell it for that amount.

Wazza,
Hows the new one going, will we see it at the nationals???

Phil

[spookypt]

Originally Posted by Wazza

Not necessarilly PHil... One thing we ALL must be wary of IF we sell is capital gains on vehicle sales as it equates to income. If you can prove it has cost you more than your selling it for then no tax applies. But if it has only cost you 60 and you sell it for 100 then wamo your up for some hefty tax bickies.... And yes, THEY KNOW!

Sppok,

As far as I know the capital gains will only be a worry if you've bought the car in a business/company name, and have it on the balance sheet as a company car.

Otherwise, a sale of a private vehicle does not attract Cap gains.

My bumblebee was a "company" car....the new one is not...for that reason.

Check it out with your accountant though to make sure.

Cheers,
Warren.

Hey Wazza, my wording was incorrect. I hate accounting! What I am trying to say is if you achieve a capital gain on your vehicle (privately owned)..whether its your main car or your hobby car or whatever...and I bought it for 30k sell spent no money on it and sold it for 60k you will pay tax on the 30k difference as that 30K it is viewed by the ATO as untaxed income!

What owners must remember is that when they 1st register their cars and to skimp on the first Stamp Duty on rego they list their car at $65000 and then in 2 years sell for $80000 the 15K difference is taxable as income. (Unless receipts can be shown that more money has been spent in the interim.)
I'l stand correct but Ernst and Young and my company accountant surely cant both be wrong?? I'll happily stand corrected if proven otherwise though.

Spookypt

[Wazza]

Hey Spook,

I'm FAIRLY sure that the sale of a private vehicle does not attract Cap Gains tax.

Had a bit of a google, and found the following on one of the tax websites,

The exemptions from capital gains tax Australia are mentioned specifically. The exemption law is applied to all kinds of assets from tangible to intangible and from owned outright to partial interest assets. Here is a list of some of the assets that enjoy capital gains tax exemption in Australia:
Any asset that is purchased before 20th September 1985 till its original owner is surviving.
The personal use assets purchased for up to $10,000 including electrical equipments, furniture and boat.
The main residence of the taxpayer whose adjacent 2 hectares are in domestic use.
Cars and small motor vehicles.
Compensation received for the personal or occupational injury.
Sold life insurance policies.
Shares bought in the pooled development funds.
Notes and bonds sold at discount.
Payments received from government-designed schemes like the industry restructuring schemes.
Collectables purchased for up to $500
Gambling wins and losses.
Trading of stocks.
but I'll check with my accountant tomorrow.

I could be wrong....first time for everything

Cheers,
Warren.

[schipps]

Originally Posted by Wazza

Hey Spook,

I'm FAIRLY sure that the sale of a private vehicle does not attract Cap Gains tax.

Had a bit of a google, and found the following on one of the tax websites,

The exemptions from capital gains tax Australia are mentioned specifically. The exemption law is applied to all kinds of assets from tangible to intangible and from owned outright to partial interest assets. Here is a list of some of the assets that enjoy capital gains tax exemption in Australia:
Any asset that is purchased before 20th September 1985 till its original owner is surviving.
The personal use assets purchased for up to $10,000 including electrical equipments, furniture and boat.
The main residence of the taxpayer whose adjacent 2 hectares are in domestic use.
Cars and small motor vehicles.
Compensation received for the personal or occupational injury.
Sold life insurance policies.
Shares bought in the pooled development funds.
Notes and bonds sold at discount.
Payments received from government-designed schemes like the industry restructuring schemes.
Collectables purchased for up to $500
Gambling wins and losses.
Trading of stocks.
but I'll check with my accountant tomorrow.

I could be wrong....first time for everything

Cheers,
Warren.

El Presidente,

I copied this straight off the ATO website.


"Guide to capital gains tax 2008-09


Exemptions and rollovers
There are exemptions and rollovers that may allow you to reduce, defer or disregard your capital gain or capital loss.
.............
Exemptions

...........

Capital gains and capital losses that are also disregarded include those you make from:

a car (that is, a motor vehicle designed to carry a load of less than one tonne and fewer than nine passengers) or motorcycle or similar vehicle ..."

SO, unless your Cobra has more than 9 seats...you should be ok.

Also, your last point about trading of stocks, it DOES attract Capital Gains Tax.
regards


Mick

[Towmaster]

Or for the seller and purchasers benefit you could just lie about the purchase price provided both can handle the cash implications..... Not that i would do that... or recommend it.... being the honest law abiding citizen that i am.....

[spookypt]

I'm WRONG! Earnst and Young owe me a CREDIT!

[Rog246]

interesting string fellas, but here's a thought/perspective that maybe those who build their cars could keep in mind.
I imagine that you could sneak around the capital gains issue by keeping a log book of the hours spent on the build and then factor in an hourly labour rate of .............your choice !
I know that's what I'm going to do!
The Taxation Dept can carry on all they like but they can't tell YOU what your labour rate is worth.
That being said I certainly wouldn't go overboard on that issue. I don't think that Tax would except a labour rate of $300/hr if you have full time employment paying you only $35/hour, however, if for instance you had a set of under utilised skills AND you've changed the field of your endeavours and NO longer employ those skills.............well.
It's something to keep in mind, and I for one am going to take that tack
Rog246

[Merv and Sharon]

Rog, it is my understanding that there is no CGT on sale of private vehicles.


merv

[spookypt]

That's correct Merv! I was wrong..Wazza was righT!

[Merv and Sharon]

He has to luck out sometimes....

[NASSTY]

Only way the ATO could suggest a car was subject to CGT was if they deem it to be classified a collectable, like a painting etc, something that will appreciate over time. Don't know if that's been tested yet in the courts but a replica won't appreciate anywhere near as much over time as an original would.

[spookypt]

This is what a PYTHON S/R QCS 4.6 SUPERCHARGED would cost $155K + ORC made up of....

ENGINE DOHC FORD 4.6LT V8
CAST BLOCK
FORGED STEEL CRANK
STEEL RODS
BILLET FUEL RAILS
8.6-1 FORGED PISTONS
TWIN SCREW SUPERCHARGER
KENNE BELL / 15 PSI BOOST
(PREM UNLEADED 600 HP)

ENGINE MANAGEMENT MOTEC M800

GEARBOX TKO-600 5 SPEED
First 2.87
Second 1.89
Third 1.28
Fourth 1.00
Fifth 0.80

CLUTCH QUARTER MASTER

DIFFERENTIAL FORD 8.8 DETROIT LOCKER
TRU TRAC 31 SPLINE
3.55:1

SHOCKERS FRONT KONI 8211 ADJUSTABLES
SPRINGS TBA

REAR KONI 8211 ADJUSTABLES
SPRINGS TBA

BRAKES FRONT 310 DIA DISC ROTOR
6 SPOT CALIPERS

REAR 250 DIA DISC ROTORS
FORD COBRA SINGLE SPOT CALIPERS
WITH INTERGRATED HANDBRAKE ASSEMBLY

WHEELS FRONT 17 X 9 5-PIN DRIVE KNOCK ON HAILBRAND
REPLICA ALLOY RIMS
PIRELLI PZERO TYRES 285/40/ZR 17

REAR 17 X10 5-PIN DRIVE KNOCK ON HALIBRAND
REPLICA RIMS ALLOY
PIRELLI P ZERO 335/35/ZR 17

INTERIOR LEATHER

PRICE $155,000 (plus ORC)

[Merv and Sharon]

Think I would go for the Porsche GT3 ...

[stiffy]

Merv & Sharon,


I love the Porsche brand (recently sold my 911 C2) but the running costs will kill you with a new GT2. An average of $10k per 10k. Not on the track, add another 50% if you use the car for track use.


STIFFY