Hypothetical Question?
Thread Starter
Lexus Champion
Joined: May 2001
Posts: 2,468
Likes: 11
From: Ontario, Canada
Dealership calls you and tells you that your SC430 is on its way but they have someone at their dealership who is dying to get your car exactly the way you ordered it.. Dealer offers you (Lets say $10k) to sign over your car to this other interested party who is SUPER HOT for your SC..
WHAT WOULD YOU DO??
WHAT WOULD YOU DO??
Pole Position
Joined: May 2001
Posts: 353
Likes: 0
Smart thinking, genearch. Great way of arranging your transaction so as to minimize taxes. As a CPA, I applaud you. 
There is a small possibility that the IRS could assert that you have received value and tax you under a "substance over form" assertion, but I don't think so.
There is a small possibility that the IRS could assert that you have received value and tax you under a "substance over form" assertion, but I don't think so.
Lexus Fanatic
Joined: Feb 2001
Posts: 6,879
Likes: 4
From: Kaliforniastan
Didn't the Supreme Court find the IRS to be unconstitutional? God I hate those bastards...$300 refund...wow, the same refund for people that make and pay taxes on $40,000 or $400,000....WTF?
2Savvy, so what are you thinking?
2Savvy, so what are you thinking?
Thread Starter
Lexus Champion
Joined: May 2001
Posts: 2,468
Likes: 11
From: Ontario, Canada
This question has nothing to do with me just heard this story from another SC owner in the Toronto region.. What he did was take the $10k up front in cash from the dealer and then signed his rights to his car over to the interested party.. My first question was if the dealer had his hand in this transaction then don't you think they sold it for more than the $10k to the interested party.. Not sure what the legality involved in selling a car for more than the MRSP but I know when the Prowler first came out Dodge dealerships were selling for $20k plus above MRSP..
As for his position on the list he got #1 status but he didn't get his main choice.. He ended up with the Midnight Green colour on Black Int. since he didn't want to wait anymore..
Genearch,
Your way is the way I would do it if I was in that position.. I'd take the 10k right off the other order since that would be the best way to circumvent the IRS in this transaction..
Anyways just wanted to share what I heard to get your thoughts.. So you never know someone might offer you money for your upcoming SC guys..
As for his position on the list he got #1 status but he didn't get his main choice.. He ended up with the Midnight Green colour on Black Int. since he didn't want to wait anymore..
Genearch,
Your way is the way I would do it if I was in that position.. I'd take the 10k right off the other order since that would be the best way to circumvent the IRS in this transaction..
Anyways just wanted to share what I heard to get your thoughts.. So you never know someone might offer you money for your upcoming SC guys..
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