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Discussion Starter #1
The 1984 Sabre for sale for 3,500 got me to thinking already this morning.

When my Shadow was new, it cost 3,600. If it is worth 2,500 now, it has depreciated about 50 dollars per year. At the time, the dealer offered to sell me a V65 Magna for 500 less than the Shadow.

If I had bought the Magna for 3,100 and if it sold for 3,500 now, would the 400 be subject to capital gains tax?

OK, it’s cold outside, and I’m only thinking about riding today.
 

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I'm not sure that personal property is subject to cap gains tax. Even if so - you could deduct anything that increased your cost basis in the bike. So if you bought a $400 seat somewhere down the road, your cap gain would be zero.
 

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Capital gains typical only applies to CAPITAL investments. Property such as a vehicle, no matter what type, is not considered CAPITAL.

If you are fortunate to sell a vehicle for more than what you paid, then consider yourself fortunate and take the money to the bank.

However, if you declare it as such, the feds will be happy to take your money.
 

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Fuzzy Math

Metric motorcycles depreciate very quicky, losing about 50% of their value during the first 4 years. From that point they remain fairly stable until they are worn out. Your comment that it lost only $50/year is rather fuzzy math. Had you purchased it 15 years ago you would have found that your depreciation rate, assumming that someone will actually pay what you believe your bike is worth, would be about zero. Surely you must be a Republican! Just kidding, no hate mail please.
 

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More Fog

Is there anyone on this planet that would actually pay that much for a 23 year-old Sabre? Highly unlikely. Asking prices have nothing to do with value or actual selling price. If anyone pays that much, they should be committed!
 
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