Here’s tragic news: high-end car collectors to lose their tax break

11 thoughts on “Here’s tragic news: high-end car collectors to lose their tax break

  1. The classic car market has been buoyant over the last 15 years or so. And those collectors who bought cars during the Great Recession-induced market dip probably have some handsomely appreciated assets in their garages.

    But car connoisseurs looking to trade up have now lost a valuable tax benefit, and the top end of the market may be feeling a pinch as a result.

    Collectors who were tempted to trade up to a rarer, prettier and pricier car used to be able to take advantage of a provision of the Internal Revenue Code allowing them to defer the tax on their original car’s appreciation.

    The provision — the 1031 like-kind exchange — was prized by art collectors and became almost as common in the car aficionado’s lexicon as wire wheels and big-block engines. But a change in the tax code in last year’s overhaul put the brakes on the merry-go-round of up-trading.

        1. The originals lasted 239k before I replaced them with a rebuilt set for $1300. I have since learned to re-balance the cells myself, and am now over 300k miles and doing fine. This car owes me *nothing*.

          1. Holy f’ying fuzz fuck. I remember when Prius, and hybrids in general, came out, I thought the batteries would be their Achilles’ heel. Plus, as you recall, battery limitations are what keep my robophobia at bay.

            And finally, that’s how you afford to live in the Bay Area!!1!

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