Buy 'em, flip 'em, make $$$$

[MLowe05]

It's a sobering event writing a check for the CG tax when you buy a car for $50k then sell 20 years later for $460k.....

I mean, that much appreciation is a good problem to have but writing that check would have been painful. Much more bearable on the profit Mavericks are turning.

I'm not advocating buying Mavericks with the sole intention of flipping. I'm just saying I get how curiosity leads to checking the value, and offers of that much can tempt people who had every intention to hold on to the truck.

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[MLowe05]

Capital Gains tax on a Private Party sale? Sounds odd. I've bought and sold lots of my personal vehicles over many decades and never encountered this. I know when I lived in CA you needed to get a dealer's license if you sold more than 4 per year, but never heard of a capital gains issue.

Yeah, it's a thing. Now maybe you don't report it and maybe you don't get caught. But you definitely owe short term capital gains taxes in this scenario.

 

[Pacman]

I'd heard about this but didn't realize it was going on in my own backyard. Here is a Cactus Gray XLT hybrid for sale on Facebook Marketplace with 3400 miles. It's exactly what I'm looking for except the guy feels it's okay to mark up a used vehicle a good $10,000 over what he probably paid for it. I'm sure getting tired of waiting for mine but I'm not going to pay that kind of premium for a used vehicle. I'll keep waiting thanks.

Some folks on this thread are commenting that it’s a free market, and more power to him if he can flip it and make some money, but I think the OP is pointing out the sheer greed of such a move. I agree. It’s greedy.

 

[MLowe05]

Lots of folks on this thread are commenting that it’s a free market, and more power to him if he can flip it and make sone money, but I think the OP is pointing out the sheer greed of such a move. I agree. It’s greedy.

Eh? Is it? What should that person do? We don't know the circumstances. He might have bought it with the sole intention of flipping it. Or he might have ordered it having never driven it (many of us have done so) and now he doesn't like it. Should he simply leave the money on the table? Someone else could certainly scoop it up and flip it then.. So while I see what you're trying to say, I don't see why anyone of sound mind would leave $10k on the table for a stranger.

I bought a 2022 XL EB for my dad, who ended up not needing it after his car was totaled while the truck was in shipping and he had to buy something immediately. I didn't have any qualms about taking the $12,000-over-MSRP deal. If I hadn't made it, someone else would have.

 

[Old Ranchero]

In Northern VA, there are so many used Mavericks on the market. My Local ford dealer has 6 new ones and a used one on his lot. Within 100 miles there are 36 used mavericks in my area. Everyone is buying and flipping them, and then just ordering them again. It's insane. I flipped my Bronco Black Diamond in April and I am about to flip my Maverick. They are not worth much, and I am getting rid of it, before the market plummets. My offers have been steadily declining, time to get out now.

what was the point of even buying them in the 1st place?

 

[Bobinmi]

I wonder if I can write off all the losses after selling vehicles way below purchase price....? Now, uncle sam wants a slice of pie, if a ONCE in a lifetime event comes along where you can actually MAKE a dollar on a vehicle...?

 

[Old Ranchero]

I'm not implying anything. The comment is a reminder to others as most here don't understand the U.S. tax implications. We frequently see people on this Forum talking about selling and making a few $k off the top w/o regard to the actual net profit after tax. In a case where there's a net benefit of ~$8k, sure, but the net gain is not simply the sale price minus the purchase price....

It's a sobering event writing a check for the CG tax when you buy a car for $50k then sell 20 years later for $460k.....


.

please point us to the Federal tax code section stating private parties using after tax $ to purchase personal vehicles have Capital Gains considerations if they happen to make a profit. IRS has exceptions for many sales of personal property- primary homes for example. Individuals selling a primary residence can keep up to $250k proceeds and couples up to $500k tax free on sale of their primary home subject to certain conditions. We did it with our last home sale in 2018 and I'm doing it again this year after selling the next home we lived in. I have to think there are similar exclusions from paying taxes on private party vehicle sales under a certain number in a specific time frame

 

[MLowe05]

please point us to the Federal tax code section stating private parties using after tax $ to purchase personal vehicles have Capital Gains considerations if they happen to make a profit. IRS has exceptions for many sales of personal property- primary homes for example. Individuals selling a primary residence can keep up to $250k proceeds and couples up to $500k tax free on sale of their primary home subject to certain conditions. We did it with our last home sale in 2018 and I'm doing it again this year after selling the next home we lived in. I have to think there are similar exclusions from paying taxes on private party vehicle sales under a certain number in a specific time frame

You're correct about the house being an exemption. But you are wrong if you think cars don't count. And cars don't qualify for any exemptions. I can't point you to the specific code, but you can read more about it here:

https://turbotax.intuit.com/tax-tip...should-know-about-capital-gains-tax/L0m06D9lI

 

[Johnkn]

please point us to the Federal tax code section stating private parties using after tax $ to purchase personal vehicles have Capital Gains considerations if they happen to make a profit. IRS has exceptions for many sales of personal property- primary homes for example. Individuals selling a primary residence can keep up to $250k proceeds and couples up to $500k tax free on sale of their primary home subject to certain conditions. We did it with our last home sale in 2018 and I'm doing it again this year after selling the next home we lived in. I have to think there are similar exclusions from paying taxes on private party vehicle sales under a certain number in a specific time frame

While I’m not a tax professional I do employ one. I believe Schedule D is what you’re looking for

.

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[Skeeter163]

I'd heard about this but didn't realize it was going on in my own backyard. Here is a Cactus Gray XLT hybrid for sale on Facebook Marketplace with 3400 miles. It's exactly what I'm looking for except the guy feels it's okay to mark up a used vehicle a good $10,000 over what he probably paid for it. I'm sure getting tired of waiting for mine but I'm not going to pay that kind of premium for a used vehicle. I'll keep waiting thanks.

 

[CSSMAVO]

Some folks on this thread are commenting that it’s a free market, and more power to him if he can flip it and make some money, but I think the OP is pointing out the sheer greed of such a move. I agree. It’s greedy.

Its capitalism and I wouldn't want it any other way. You want communism? Move to China. If I have more money then you, I should be able to do as I please. I don't understand why anyone gets bent out of shape on markups....it's not forced. Just build and wait....

 

[Skeeter163]

You're correct about the house being an exemption. But you are wrong if you think cars don't count. And cars don't qualify for any exemptions. I can't point you to the specific code, but you can read more about it here:

https://turbotax.intuit.com/tax-tip...should-know-about-capital-gains-tax/L0m06D9lI

I'd heard about this but didn't realize it was going on in my own backyard. Here is a Cactus Gray XLT hybrid for sale on Facebook Marketplace with 3400 miles. It's exactly what I'm looking for except the guy feels it's okay to mark up a used vehicle a good $10,000 over what he probably paid for it. I'm sure getting tired of waiting for mine but I'm not going to pay that kind of premium for a used vehicle. I'll keep waiting thanks.

check out Carvana, they have plenty.

 

[CSSMAVO]

what was the point of even buying them in the 1st place?

I originally was going to keep both, but with the market where it was, I decided to sell them. I can just order them again. Furthermore, the Maverick I built is overpriced. The sweet spot on the Maverick is an XL with AWD or the Hybrid. I wouldn't put any other options on it. The car has been nothing but disappointing to me, cheap interior quality, and it's just too damn small. If Ford's idea was to have people try a Maverick and then go for something bigger, has worked. Hence why everyone in my area is selling theirs. It's nothing special...it's actually a very very basic little cross over.

 

[Pacman]

If I have more money then you, I should be able to do as I please.

Point proves itself

 

[CSSMAVO]

Point proves itself

I didn't buy my Maverick at markup, I waited like everyone else. But this is America kid....how old are you? Do you understand the world around you? Take a deep breath and relax.

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