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I have spoken to a "lets say dealer" who told me some people buy these coaches just to drive them for six months and then try to resale them at a higher price???? Ok Ive never heard that one before! Sounds like a line of BS. I call BS
home: Southern California
05 #746 quad slide 2000i,
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Anything is possible, but I would say that unless one gets wholesale buys, the selling any RV for a profit is all that common.
More likely the six month owners sell because they 1. found the lifestyle was not what they thought it would be, 2. the coach maintenance was way beyond what they were prepared for, 3. their situation changed.
Richard and Rhonda Entrekin
99 Newell, 512
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Inverness, FL (when we're home
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The main reason folks would sell quickly is for tax purposes. If the coach is used as a business tool then it can be mostly depreciated in Year 1 under Section 179 expensing. So if you are trying to shelter lots of income (nice problem) then buying and selling RV's makes sense.
If works like this:
So your $1.15M coach only 'costs' you $747.5K. And if you can sell that coach again after 1 year for $1 million you just made a $250K profit. All care of Uncle Sam.
#751
Taking the winding road.
(This post was last modified: 01-31-2021, 09:24 AM by
lelievre12.)
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The big "if" is getting $1M after a year. The depreciation curve is steep on these toys. The best part is getting the tax relief and having the coach, win- win.
Steve Magown
Calhoun, LA
2001 Prevost H3 Vantare
formerly Newell #458
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You forgot the tax on the gain which will not be at capital gains rates. Cash loss, tax on the sale, one year write-off and proving it was used only for business is a steep hill to climb.
2001 Newell #579
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