There are many high income earners that like to collect expensive high-end cars that might face difficult tax issues if they do not plan correctly. This article discusses some of the tax planning strategies that luxury car owners can use to reduce expenses. It is important to be aware of the complexities of capital gains tax laws and individuals should know what sort of gain in value their vehicle has had. Being aware of the different local tax laws that each state has is also extremely important. Different states have their own set of income, estate, gift, and property tax laws that could impact any sort of inheritance concerning a luxury high-end vehicle. Using a trust might be a good way to bypass certain taxes. This article provides important advice on how trusts and other estate planning strategies can be used by clients.
See Todd Ganos, Tax Planning For Ferraris And Other Ultra-High-End Collector Cars, Forbes, September 14, 2015.
