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Sept. 3 — Anthony W. Wang, former president of the software and consulting firm now known as CA Technologies, disagrees with the IRS's characterization of his car collection as “collectibles.”
In a petition filed with the U.S. Tax Court Aug. 25, Wang challenged an adjustment to his 2011 income in an Internal Revenue Service deficiency notice, after the agency determined he had $30 million in capital gains from the sale of 11 high-end classic sports cars taxable at the higher 28 percent rate applied to collectibles (Wang v. Commissioner, T.C., No. 21597-15, petition filed, 8/25/15).
Wang said in the petition that the cars weren't collectibles as defined under Section 408(m)(2), because he “had owned and held the Automobiles for personal use and enjoyment. The automobiles were driven on race tracks, at road rallies, and/or on public streets and highways,” the petition said.
The cars were capital assets acquired in the 1980s, and Wang “incurred costs of keeping them operational and so they could actually be driven, not for the purpose of preservation.”
The cars were the following makes and models:
Norton Rose Fulbright US LLP represents Wang.
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