Again, keep in mind the point of view of the Board of Equalization and the Department of Motor Vehicles. They both need to wet their beaks or they will eventually be banging on your door wondering how you could really be a business if you only buy but never sell vehicles. Remember the BOE needs to get paid on your profit and the DMV needs to get paid on the registration of that car (or truck). A good approach is to hold whatever car you like for 6 – 8 months and then sell it. With any luck, you will even be able to scrape a profit in the process. Most people in a position to do this for fun aren’t looking to make massive profits from this business model. They are content with just drive a beautiful car around for 8 months before selling it. Then having reconditioning, insurance, and maintenance associated with that vehicle be a business expense before selling it for a profit. Then rinse and repeat!
Related FAQs
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