Fmv/trade question

Turning a parts miata into a challenge car.  

I had pulled the torsen out of the parts car for my dd miata. Put the open and questionable rear into the parts car.

So i traded myself an open "far less value " rear for a torsen (generally 500 in my area) rear. Would it be acceptable to use a fmv of -200 (200 recoup on parts car purchase, deducted drom the challenge budget) for this swap?

Example: car: 800. Sold torsen to self for open diff and 200. New budget: 600. Recoup used: 200

Trick question or self justification LOL.   May have to got to Challenge Supreme court.

In reply to Dirtydog :

Didn't want to muddy that thread too much more. Hence this one. Seems legal in my head....

Self justifixation........Beautiful thing, don't ya think.

Uh oh! Freudian slip on my part.

Bump for the workday crowd

I don't have an issue with it.

My ex-$2017 Ranger build is similar. I traded up to an 8.8 out of my old Ranger, that's currently being converted to a flat bed trailer by my dad , all I had to do was swap in the 7.5 from the build truck. I claim zero or budget neutral. I still had to do all the work to get both rearends into and out of both vehicles, what a PITA....

Sounds fair to me.

That sounds like a good valuation on the trade to me. Very reasonable, I'd give an open diff and $200 for a torsen any day of the week. I'm probably in the top 3% of Miata parts sold on this site. With 13 owned and not many sold as a whole car. 

Yeah, seems reasonable to me. 

I think the paper trail goes something like this:

Value of parts car as you got it (remember you can't recoup more than cars starting value).

"Sold" to yourself $500 torsen diff from that car -500.

"Purchased" open diff from yourself for $200.  Add that to your Challenge budget. +200

So if your parts car cost 800...then:

800 -500 = 300 after recoup ( you only have 300 that you can claim in recoup on 800 original price)

Then you would add 200 to your budget ... 800 - 500 +200= 500 total budget.

Rationale to do it this way is to keep track of your recoup limits associated with original car purchase.

Capische?

Holy crap this got complicated fast.

Yes, you can sell parts to yourself for FMV. So, bring documentation, but going from an $800 Miata with a Torsen to a $600 Miata with an open differential seems totally fair. 

In reply to Tom Suddard :

Pretty soon a  CPA will be most critical team member

In reply to Ovid_and_Flem :

Once you get the CPA's involved, how long before we all need attorneys too???

Ovid_and_Flem said:

In reply to Tom Suddard :

Pretty soon a  CPA will be most critical team member

Hopefully I don’t need to include my accountants hourly rate or I may be bringing a RC car.