65 Cobra 427 replica - Page 16 - PeachParts Mercedes-Benz Forum

t walgamuth · #**226** 08-29-2018, 03:04 PM

Today I took the Cobra over to my favorite fabricator, the maistro of metal, Michael LeVeque. He fixed the cracked wheel for me. I plan to put slicks on those wheels if it looks like I can lower the car and fit over the tires.

While there a friend of his came over and looked the car over and offered me more than I paid for it. I said I wasn't nearly tired of it yet but thanks for the offer!

He liked the aluminum chassis and the orange paint...oh well what the heck he liked it all!

t walgamuth · #**227** 09-04-2018, 07:27 PM

The last few days I have been working on getting the wheels so they will fit up under the fenders after I lower the car. I plan to drop it down to 3" ground clearance in front and 4" in back .

I'm on the verge of buying tires now.

sloride · #**228** 09-05-2018, 01:23 AM

Quote:

Originally Posted by t walgamuth

Today I took the Cobra over to my favorite fabricator, the maistro of metal, Michael LeVeque. He fixed the cracked wheel for me. I plan to put slicks on those wheels if it looks like I can lower the car and fit over the tires.

While there a friend of his came over and looked the car over and offered me more than I paid for it. I said I wasn't nearly tired of it yet but thanks for the offer!

He liked the aluminum chassis and the orange paint...oh well what the heck he liked it all!

That would fall under a short term capital gain. Lower this year, thank you President Trump.

t walgamuth · #**229** 09-05-2018, 08:14 AM

Tell me something I don't know.

I have had a few capital gains here and there. Rs like for these sources of income to be tax free. Personally I have never understood why. Its how I make money (and any other person who owns commercial real estate). Why should I be allowed income tax free when my friend Sloride who works for wages has to pay taxes? Warren Buffet, one of the richest men in the world pays a lower tax rate than his secretary, where is the fairness in that?

Here is how commercial real estate investment works:
1. you have to come up with cash (at least theoretically) to put down. 20% is the traditional number.

2. You get a mortgage for the rest.

3. With some luck you will have positive cash flow, meaning simply that after paying your expenses from the rent received you have money left over to spend or do as you wish with.

4. At tax time you get to deduct the interest and this thing called "depreciation". Lets say that your investment is worth 1 million. So you take the mil and divide by 33 (IIRC) and you take that off on your taxes as an expense $30,330/ year. You might have a postitive cash flow but if it is less than 30,000 per year you get to claim the property as operating as a loss.

This is perfectly legal but why? Theoretically it is done as an incentive so investors will invest in buildings and or land instead of some other place.

5. So then when you sell for $2,000,000 ten years later after taking income out of it for ten years and possiblly sheltering other income, you basically take off the original amount you paid for it, $1,000,000 and you have a mil of capital gain, and this is not pretend it is real money.

Now at this time it seems fair to me you should have to pay taxes on this capital gain since it is truely income but the Rs say no, its double taxation or some such nonsense. It is truely income and should be taxed as regular income just like Sloride's wages.

So yes, I as a real estate investor benefit from it all and still I can see the basic unfairness to it.

Apologies to our accountant members for my imprecise explanation of the tax laws.

sloride · #**230** 09-05-2018, 09:11 AM

Quote:

Originally Posted by t walgamuth

Tell me something I don't know.

I have had a few capital gains here and there. Rs like for these sources of income to be tax free. Personally I have never understood why. Its how I make money (and any other person who owns commercial real estate). Why should I be allowed income tax free when my friend Sloride who works for wages has to pay taxes? Warren Buffet, one of the richest men in the world pays a lower tax rate than his secretary, where is the fairness in that?

Here is how commercial real estate investment works:
1. you have to come up with cash (at least theoretically) to put down. 20% is the traditional number.

2. You get a mortgage for the rest.

3. With some luck you will have positive cash flow, meaning simply that after paying your expenses from the rent received you have money left over to spend or do as you wish with.

4. At tax time you get to deduct the interest and this thing called "depreciation". Lets say that your investment is worth 1 million. So you take the mil and divide by 33 (IIRC) and you take that off on your taxes as an expense $30,330/ year. You might have a postitive cash flow but if it is less than 30,000 per year you get to claim the property as operating as a loss.

This is perfectly legal but why? Theoretically it is done as an incentive so investors will invest in buildings and or land instead of some other place.

5. So then when you sell for $2,000,000 ten years later after taking income out of it for ten years and possiblly sheltering other income, you basically take off the original amount you paid for it, $1,000,000 and you have a mil of capital gain, and this is not pretend it is real money.

Now at this time it seems fair to me you should have to pay taxes on this capital gain since it is truely income but the Rs say no, its double taxation or some such nonsense. It is truely income and should be taxed as regular income just like Sloride's wages.

So yes, I as a real estate investor benefit from it all and still I can see the basic unfairness to it.

Apologies to our accountant members for my imprecise explanation of the tax laws.

Did not read it all but used to be short term was at your regular income tax rate. Waiting until 366 days after purchase changes it to long term. Will go back and read it all.

Edit: I thought you would pick-up the whole 2 mill as capital gain on real property, as you wrote the purchase price down to zero, at least I was snookered into it by my accountant, but was no 2 mill.

t walgamuth · #**231** 09-05-2018, 10:03 AM

Quote:

Originally Posted by sloride

Did not read it all but used to be short term was at your regular income tax rate. Waiting until 366 days after purchase changes it to long term. Will go back and read it all.

Edit: I thought you would pick-up the whole 2 mill as capital gain on real property, as you wrote the purchase price down to zero, at least I was snookered into it by my accountant, but was no 2 mill.

Well, as noted I am not an accountant.

Capital gains has been limited to 15% since I believe GWB era. I don't know what it is now. I am working on my taxes for 017, so I'll let you know how I did under Trump's tax cut.

sloride · #**232** 09-05-2018, 10:40 AM

Quote:

Originally Posted by t walgamuth

Well, as noted I am not an accountant.

Capital gains has been limited to 15% since I believe GWB era. I don't know what it is now. I am working on my taxes for 017, so I'll let you know how I did under Trump's tax cut.

Tell your accountant to use the rates from 2016, the IRS will take the extra $$ no questions asked.

t walgamuth · #**233** 09-05-2018, 10:46 AM

hah hah!

t walgamuth · #**234** 09-06-2018, 10:25 PM

Today I put the 16" rim on the front hub and spun it to see if it is true. It is not. So I took it to the local tire shop that I trust and asked them how it looked. He said he'd ask his fixer to come by and look at it. He said the guy can actually cut a section out of the rim and weld in a new section if needed.

Wow!