Post your prediction of what the GT will sell for at Barret Jackson.
- Thread starter txviper
- Start date
Gary
GT Owner
Cobrar
GT Owner
Apollo
GT Owner
Step right up.
Gentlemen,
This will make auction night a bit more fun. I’m in of course. $100.00 from each member collected before the auction. I’ll be the banker. If anybody else would prefer to do it that’s cool by me. My prediction of 3M stands. All bids must be in 100K increments (1.5 ok, 1.55 no go). So nobody can bid within 100K of someone else’s bid. I’ll start a new thread in the GT owner’s section so this isn’t public. Winner takes the entire pool. Cheers.
Chip
Gentlemen,
This will make auction night a bit more fun. I’m in of course. $100.00 from each member collected before the auction. I’ll be the banker. If anybody else would prefer to do it that’s cool by me. My prediction of 3M stands. All bids must be in 100K increments (1.5 ok, 1.55 no go). So nobody can bid within 100K of someone else’s bid. I’ll start a new thread in the GT owner’s section so this isn’t public. Winner takes the entire pool. Cheers.
Chip
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Knowing of GT owners who have turned down 2x sticker for their cars already, I will guess $2.2M. A few clarifications are in order.
My understanding is that Ron Pratte will buy this car in a standard retail transaction. Ron will then donate the car to NASCAR Hall of Famer Ray Evernham's Autism/Asberger's charity "IGNITE". The charity will then auction the car at Barrett-Jackson Scottsdale, live on Velocity (or Discovery) TV.
Donating the GT creates no conflict with the provision in Ford's Buyers Agreement against a sale within two years of purchase. The charity, not being a party to the Buyer Agreement, has the right to sell the car if it wishes. Maybe Ray should keep it for a year and charge a $100 donation to IGNITE for rides!
Finally, on designated charity lots such as this, the hammer price IS the final price. Barrett-Jackson does not charge an entry fee, buyers or sellers commission on such cars. Should be fun !
My understanding is that Ron Pratte will buy this car in a standard retail transaction. Ron will then donate the car to NASCAR Hall of Famer Ray Evernham's Autism/Asberger's charity "IGNITE". The charity will then auction the car at Barrett-Jackson Scottsdale, live on Velocity (or Discovery) TV.
Donating the GT creates no conflict with the provision in Ford's Buyers Agreement against a sale within two years of purchase. The charity, not being a party to the Buyer Agreement, has the right to sell the car if it wishes. Maybe Ray should keep it for a year and charge a $100 donation to IGNITE for rides!
Finally, on designated charity lots such as this, the hammer price IS the final price. Barrett-Jackson does not charge an entry fee, buyers or sellers commission on such cars. Should be fun !
Stef
GT Owner
I believe it will hammer away at well above 3M mark.
Given the grand stage of BJ, the participants involved, the reason and that the NFGT is perhaps the most desired supercar on the planet right now with a legendary history like none other. Going a bit out on a limb here, but It could go the way of Shelby's twin turbo Cobra roadster.
Given the grand stage of BJ, the participants involved, the reason and that the NFGT is perhaps the most desired supercar on the planet right now with a legendary history like none other. Going a bit out on a limb here, but It could go the way of Shelby's twin turbo Cobra roadster.
I think the car will hammer above 3m. However, I have a question (I already emailed my tax accountant for the answer, but they are slow to respond, and perhaps others might be naive like me on tax stuff). Anyone know how this charity deduction works?
Let's say you pay $2,468,000 for the car, which retails at $468k. You have a 2m tax deduction. If you make 3m per year, and you pay say 1.2m to the feds, and about $400k to the state (CA), does this 2m tax deduction come straight off the top (paying $0 taxes??)? Does it apply for both state and fed? Does it carry over to the next year (due to the balance of the deduction)?
Let's say you pay $2,468,000 for the car, which retails at $468k. You have a 2m tax deduction. If you make 3m per year, and you pay say 1.2m to the feds, and about $400k to the state (CA), does this 2m tax deduction come straight off the top (paying $0 taxes??)? Does it apply for both state and fed? Does it carry over to the next year (due to the balance of the deduction)?
fjpikul
GT Owner
PeteK
GT Owner
BMF: No, it does not come off the top. Only tax "credits" do that. It's a deduction against your income on Schedule A, but AMT will reduce the value of charitable donations. Donations do not carry over to the next year (you're thinking of capital gains and losses), unless you break it into donations in tow different years. The only way to figure it out is to crank it into the accountant's tax computation software, or do it yourself with Turbotax or other app.
Frank, it only goes on Schedule C if it's a business expense deduction. BMF: Is this a business expense? Either way, you really need to get your accountant involved before you stroke any checks.
Frank, it only goes on Schedule C if it's a business expense deduction. BMF: Is this a business expense? Either way, you really need to get your accountant involved before you stroke any checks.
texas mongrel
GT Owner
I’m a bit puzzled by part of this answer: some of my charitable deduction carry forward
PeteK
GT Owner
I don't know your circumstances or how you donate. Like I said, consult your accountant. Free advice is worth what you paid for it!:lol
I spoke to my accountant.
This type of donation is what the IRS deems as a "Quid Pro Quo" contribution. Under IRC Section 170, the amount of deduction a taxpayer can claim is reduced by the value of goods or services received. In my above example, your actual donation is $2m.
The charitable donations of cash are limited to 50% of your "Adjusted Gross Income" in a particular year. In my example above, if the AGI is 1.4m. one could only deduct $750k of the 2m charitable donation in the first year. The excess contributions are carried over to the succeeding next five years.
However, the actual tax savings associated with the deduction are based on your tax rate for both Fed and state. For simplicity, if your combined tax rate is 50%, you save $375k in taxes the first year ($750k x 50%). All things remaining the same with your AGI each year, you continue to save $375k in tax, until you reach 50% of your charitable contribution = $1m in total tax savings for your $2m contribution.
Bottom line, you donate 2m, you get 1m back over time (up to 5 years). In my above example, if I paid $2,468,000 for the car, my actual cost would be $1,468.000.
This type of donation is what the IRS deems as a "Quid Pro Quo" contribution. Under IRC Section 170, the amount of deduction a taxpayer can claim is reduced by the value of goods or services received. In my above example, your actual donation is $2m.
The charitable donations of cash are limited to 50% of your "Adjusted Gross Income" in a particular year. In my example above, if the AGI is 1.4m. one could only deduct $750k of the 2m charitable donation in the first year. The excess contributions are carried over to the succeeding next five years.
However, the actual tax savings associated with the deduction are based on your tax rate for both Fed and state. For simplicity, if your combined tax rate is 50%, you save $375k in taxes the first year ($750k x 50%). All things remaining the same with your AGI each year, you continue to save $375k in tax, until you reach 50% of your charitable contribution = $1m in total tax savings for your $2m contribution.
Bottom line, you donate 2m, you get 1m back over time (up to 5 years). In my above example, if I paid $2,468,000 for the car, my actual cost would be $1,468.000.
Plus sales tax, and any excise, or use taxes your state might have.
On a serious note, thanks for the post. Interesting to boil it down like that.
On a serious note, thanks for the post. Interesting to boil it down like that.
