Financial Question #1 Hobby income - Page 2 - PeachParts Mercedes-Benz Forum

benhogan · #16 02-25-2014, 12:47 PM

Quote:

Originally Posted by spdrun

OK, you're not talking about conventional dealer financing, but rather about usurous financing rates from sleazy used car shops. Gotcha.

in Jacksonville, NC where the Camp Lejeune marine base is, used car dealers have been known to sell the exact same car over and over to different Marines who buy on credit, get deployed and abandon it, then the car gets repo'ed.

another tidbit....Marines have been known to hang around ATM machines waiting for midnight when their paychecks hit so they can withdraw. Apparently, the car dealers and the hookers all know the marines' pay schedule and the town instantly comes alive on payday.

JB3 · #17 02-25-2014, 01:00 PM

Quote:

Originally Posted by MS Fowler

I know this is a car forum, and not a financial one. I also know we have a breadth of experience here that goes far beyond car stuff.

If I buy old cars, restore/ repair them, and then resell, is that income taxable for a retired person? ( assuming that actually IS a profit) If it is taxable, can i deduct the cost of tools, garage etc?

as long as you are extremely conservative about what you take on to fix up, could be profitable. If you are like me and enjoy tinkering with oddball vehicles just to test them out, you will lose money regularly.

The guys who make big bucks search out the cars that can be sold for big money easy after a good restoration, and turn down most of the cars they find interesting, but not profitable. (history channel has taught me this factoid)