Computer Tycoon Challenges IRS Position on Car Collection

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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.

Capital Assets

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:

  •  1961 Ferrari 250 GT SWB Berlinetta,
  •  1962 Ferrari 250 GT SWB California,
  •  1956 Porsche 356 A Coupe,
  •  1955 Porsche Speedster,
  •  1956 Mercedes-Benz 300 SL Gullwing Coupe,
  •  1960 BMW 507 Roadster,
  •  1964 Ferrari 330 LMB,
  •  1959 Ferrari 250 GT California Spyder,
  •  1952 Ferrari 250 MM Vignale Spyder,
  •  1957 Ferrari 500 TRC Roadster, and
  •  1957 Ferrari 250 GT Tour de France.

Norton Rose Fulbright US LLP represents Wang.