Ford Muscle Cars Tech Forum banner

1 - 20 of 23 Posts

·
Registered
Joined
·
4,520 Posts
Discussion Starter · #1 ·
While waiting for the '67 Galaixe convertible episode on Overhauling, I was watching a re-run of "Trash to Ttreasure"?
The builder was going to rescue a 71 Plymoth Road Runner...any way he decided to install a HEMI, found an old Keith Black block, with a crack in the webbing off the cam journal. The seller wasn't hiding it so it wasn't like he was running a game...although he did claim it had been Magged, he didn't actually say it passed inspection. Still, thats not a deal I would have made on camera. I sat there waiting for someone to back out of the deal.

He actually bought the block for $1,500? Anyone with good sense would know the block was trashed the minute they saw that crack in the webs.

He comes off on the show as an old school hot rodder, been turning wrenches since Moses was in short pants. Either he had Stars in his eyes ...was enguageing in wishful thinking because it was a KB block or he isn't as much of a rodder as they claim.

There is no way that I would have touched that block, especially at that price. I hope he got his money back.

There are some cracks that you can repair or overlook...but something that affects the foundations of the block - no way.

He ended up doing what he should have done in the first place, bought a "crate engine" and called it a day. Sometimes you just have to face facts somethings are past rescue.
 

·
Registered
Joined
·
2,617 Posts
I saw that episode a few weeks back... I agree, he was really hung up on having an old original HEMI block, and when he found one with KB's name on it I think all rational thought left his brain. Will make a nice paper weight... I guess...
 

·
Registered
Joined
·
1,904 Posts
It probably means the car owner has to pay taxes on the cost of improvemnts made to his car.Same as if you won a TV or cash on a game show ya have to pay tax on the winnings.

I've only see that Wrecks to Riches show a few times and that shop owner doesn't make the best choices when buying stuff. One thing he seems to like is painting SMC on the side of the cars which stands for Super Muscle Car. Pretty stupid thing to put on the side of a car he's trying to auction off for $50,000 or more.
 

·
Registered
Joined
·
625 Posts
Ya I seen that also. When he first bought it I thought maybe he knew something I didn't guess I was wrong. O well at least now he has something laying on the floor of his shop to talk about. I also think he has made some bad buying choises. Hell he paid 5 grand for an old rusty stang that had been butchered. Maybe they are worth more on tv because you could get a nice runner around here for that much.
 

·
Registered
Joined
·
4,520 Posts
Discussion Starter · #8 ·
On 2006-07-07 15:52, ShadetreeMechanic wrote:
What channel is this Discovery or Speed? and at what times i cant seem to catch these shows on a regular basis?
Where I live, I think it comes on TLC, the learning channel. I was suprised...I too had expected it on Speed, Espn or discovery too. it came on late night around 11 pm...way past my usual bed time, but I just had to see the Galaxie build.

That disclaimer is standard for any show that gives away cash or prizes. Even the Home makeover shows have similar disclaimers.

Uncle Sam wants his cut off any transfer of goods, services or time. If the show can claim it as a donation, charity or looks for a tax deduction...Uncle Sam is their to see if he is owed something.

Remember a while back, one guy had his car "done"...ended up having to sell it to pay off the tax obligation. What was funny... after paying off every thing and paying a few bills...eh ended up buying another "junker" to start on. The Done car was too much hassle, he had to sign on the dotted line to allow them to use the car for promotions, allow it to be used for photo sessions and Ads. I guess, in a way, he figured it wasn't his car any more.
 

·
Registered
Joined
·
465 Posts
Let's see, you take a guys ride without his permission, mod it, make him or someone pay taxes on increased value of car, then make millions filming the scene of the crime! What a deal!

I still think the Girls Gone Wild deal tops them all! Their idea is a little cleaner: You show me your boobs, I'll film it and make millions. I saw something on TV the other day that showed that guy living in some huge mansion.
 

·
Registered
Joined
·
4,520 Posts
Discussion Starter · #11 ·
I would think they are on solid legal ground; remember, they do get permission from family members before they "steal" the car. Even in the case of the Galaxie, they got the property owner, the mother, to sign off on the removal, gave her a "token" payment and gave them a phone number to contact them.

Legally, they seem to be covering the bases...in real life, you do the same, give away permission to take your car, when you hand over your keys to a valet for parking or a garage for a car repair.

Even though you think its pretty clear that they can only drive it to the parking space and back or just fix the car, maybe take a test drive. Truth is you give away a lot more as many of us have found out the hard way, that bailment, can be stretched to allow a lot more than you expect. If you loan your car to a relative to drive to the store and they don't return it...it'll take a lot of talking to get the Cops to do anything about it. Even if they do catch them, or damage your vehicle, that fact that you gave them the keys is going to make it real hard to force them to fix the damage or prosecute them for theft.

You gotta' guess a bunch of really sharp lawyers have looked over the policies, procedures two ways from Sunday to insure that they CYA.

At the end, you can bet they also get a sign off from the victim before he is allowed to drive off, or there would be no show. If you want to get mad at anyone... its the relatives that need to be talked about. When it comes to girl friends relatives...anyone in your household, you need to give them a good talking to about "Strangers with Candy". While I was in the military, it got to the point that at least once a month or more...some Yahoo would come by my family home to low ball my Mother and buy one of the cars I had stored at her place. Some of these guys were even "friends" of mine! Ihad anticipated that happening, so I had told her that until she heard it from me, nothing was final.

<font size=-1>[ This Message was edited by: Beoweolf on 7/8/06 9:32pm ]</font>
 

·
Registered
Joined
·
521 Posts
I've always wondered what if they took my car and "overhauled" it, and i didn't like it??? I'm sure i would like it because it would be a world of improvement over the current version, but what if the color was wrong? what if i didn't like the color of the interior? or the rims?? or i thought it was to loud? I guess the "insider" person is supposed to give ideas so hopefully they like it, but in my situation nobody even knows what i want. hell i dont even know what i want. and i think that is why i would like to do the car myself, with choices I made and hopefully i could do some of the work on it to give it more of a personal touch
 

·
Registered
Joined
·
9,251 Posts
On 2006-07-07 15:30, FEandGoingBroke wrote:
WHat do they mean by this statement????

"Improvements to the car generate tax obligations for the owner of the car." ????

Anyone figure this out? It at the tail eng of an overhaulin application.
If you don't know what that means, you better not have your car overhauled. It means that if the value of goods and services received is - say $100,000, then you owe tax on that. I'm guessing, top rate is 35%?, so you got your car stolen and now you get to pay the gubbermint $35,000 to get it back. Enjoy the ride.

And "donations" to the show means "donated for promotional purposes" and not "donated" like a 501c3 charity. You will have a nice time trying to convince the tax auditor that your Roush $10,000 crate motor isn't worth $10,000 because it was given to you. Or that Foose's (and the shop's) time is billed at $1 per hour.

If it happened to me, I'd swoon, cry, hug, etc over it - then not sign a damn thing until I had a tax lawyer standing next to me.

_________________

1967 Falcon 4 door w/351C - Owner built, owner abused.
70 Mustang 302 / 06 Ranger, 04 SuperCrew parts hauler
http://raceabilene.com/kelly/hotrod

<font size=-1>[ This Message was edited by: ckelly on 7/11/06 4:15am ]</font>
 

·
Registered
Joined
·
7,499 Posts
I've been to a guy's house in Columbus, Ohio that can aluminum blocks that have been broken like that and REPAIR them. I saw his stuff with my own eyes. He had aluminum racing blocks that had the webbing broken out of them, and he had ones there that he had fixed. The workmanship was amazing.

The blocks I was looking at were extremely heavy and thick. They looked like something that ran on nitromethane, maybe. They were Keith Black, or one of those big name blocks.

LOTS of precision welding and machining, that's for sure.

_________________
66 mustang
302 4-speed 289 heads, 10.63 @ 129.3
http://www.mustangworks.com/cgi-bin/moi-display.cgi?220


<font size=-1>[ This Message was edited by: n2omike on 7/11/06 4:54am ]</font>
 

·
Registered
Joined
·
2,502 Posts
Hey guys my dad works as a limo driver in vegas and when they did the mustang overhauling episode at SEMA my dad happend to pick up a producer for that show tax at the time was 28% and you had to pay it on basicly parts on the car not labor. But at 10k for a motor alone and 2k in stereo equipment it can get pricy I honestly dont know what they do, maybe the show picks up the tab and then the people pay overhaulin back?
 

·
Premium Member
Joined
·
1,874 Posts
My car is already priceless so how can the state charge you for the increased value of it. If that is the case then anyone one who painted their car would have the value of that car increase and would therefore have to pay a tax increase on it.
 

·
Registered
Joined
·
4,520 Posts
Discussion Starter · #17 ·
If you recieved a legally deducted "Donation", you will have to pay taxes. If someone gave your car a paint job, but didn't also claim it as a legal tax "deduction" then you ... may ... not owe any taxes on it. The ...may... starts as soon as some disgruntled individual makes a report to the IRS. In that case, the rules of "barter" come into play.

If you paint it yourself, then you still may have a tax liablity...but you can deduct the effort, parts .... from the cost - most of the time its legally a wash. Same as home improvements. They can increase the value of your home, but you can deduct the cost of the improvements.

You do realize that you may have a tax obligation on a yard sale, garage sale, E-bay sales? Anytime goods and/or services are transfered that have a commercial value, you have a possible tax obligation.

Most to the time, stuff like that case 'o beer you gave to your buds for helping you paint the house or pave the drive way on a saturday morning, could get you into hot water, If it were reported. You say it was friends helping out, the IRS, if aroused, could see it very different. Having a prissy IRS agent living across the street from you could be worse that cop that just doesn't like you. At least the cop has to invent some rule...the IRS can just charge you, then you have to prove them wrong.

<font size=-1>[ This Message was edited by: Beoweolf on 7/20/06 10:05pm ]</font>
 

·
Registered
Joined
·
9,251 Posts
Everything you wish you didn't have to know: http://www.irs.gov/pub/irs-pdf/p525.pdf

Bartering starts on page 17. Think they don't have it covered like a blanket? Note on page 28, column two - "If you receive a bribe, include it in your income." Page 31, you also have to include kickbacks and side commissions.

Page 31 also covers this discussion: "Prizes and awards in goods and services must be included in your income at their fair market value"

Page 32: "If you steal property, you must report its fair market value in your income in the year you steal it unless in the same year you return it to it's rightful owner."


_________________

1967 Falcon 4 door w/351C - Owner built, owner abused.
70 Mustang 302 / 06 Ranger, 04 SuperCrew parts hauler
http://raceabilene.com/kelly/hotrod

<font size=-1>[ This Message was edited by: ckelly on 7/20/06 10:54pm ]</font>
 

·
Registered
Joined
·
3,658 Posts
Hahaha, gotta love the IRS.

And who says number-crunchers don't have a sense of humor?

Sucks to get audited if your a pirate.
 

·
Registered
Joined
·
9,251 Posts
Arrr - If I have to report me booty, I'll file a blighted Schedule C and deduct me crew wages and other expenses. Scurvy dogs!

15 men on a Dead Man's Chest - yo, ho, ho it's the IRS
 
1 - 20 of 23 Posts
Top