[Guest]

I'm selling a used bike to a friend of mine. I was informed by the notary that he has to pay sales tax on the purchase price. Is there any reason that I can't tell them the purchase price was $1000 or even $100 to save him some money? I've been thinking on this for a few days and I can't see a down side.

Thanks for the help

 

[Guest]

Re: Sales tax on used bike question... (thwyld1)

The only down side is that it's illegal.

I have never done it, and you can't prove that I did.

 

[Guest]

Re: Sales tax on used bike question... (JamesP)

What he said.

When the new owner goes to register the vehicle at DMV, they must pay sales tax on the purchase price. I have a friend of a friends uncles best friends daughter that would always get two signed bills of sale. One for DMV and one for personal records. But that would be illegal.

 

[Guest]

Re: Sales tax on used bike question... (CaliDuc)

Kind of what I thought.....Thanks.....

 

[Guest]

Re: Sales tax on used bike question... (thwyld1)

Here in Virginia they look at the selling price vs. the NADA "average retail" price. If it varies by more than a certain percent, you pay tax on the NADA average retail not the actual selling price, receipt or not.

That way the Commonwealth of Virginia gets the tax money they so sorely need to support the hundreds and hundreds of valuable programs needed to assure... nevermind.

 

[Guest]

Re: Sales tax on used bike question... (thwyld1)

Here in MA (known as Taxachusetts, but far from the worst tax states) we pay on the greater of sales price or fair market value determined by blue book or similar. The insurance company will write-up a title or registration application with the purchase price but the registry compares that to their charts and gets you for the better.

 

[Guest]

Re: Sales tax on used bike question... (thwyld1)

Some people will gift the vehicle under special circumstances. Some states have gone to Blue book pricing to stop so called tax fraud.

 

[Guest]

Re: Sales tax on used bike question... (Nick D.)

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by Nick D. »</TD></TR><TR><TD CLASS="quote">Here in MA (known as Taxachusetts, but far from the worst tax states) we pay on the greater of sales price or fair market value determined by blue book or similar. The insurance company will write-up a title or registration application with the purchase price but the registry compares that to their charts and gets you for the better.</TD></TR></TABLE>
Yeah, what he said:
My son just registered a Buell (sale price $3K) had to pay sales tax on NADA Retail= $5k....ripped off!!! Remember, the original owner (my stepson) already paided sales tax on $7500 when HE bought the bike!! So, on and on it goes everytime someone else (besides a family member) buys the bike!!
RIP OFF!!!

 

[Guest]

Re: Sales tax on used bike question... (tricklidz1)

Wow. I never realized so many states taxed private party sales. What a crock! In Arizona, you don't have to pay any kind of tax if you're buying from a private party, only if you're buying from a dealer.

They tried it a few years ago, but they quickly abandoned it after mass protest.

I don't even like paying tax on used vehicles from dealers, because as tricklidz said, the thing's already been taxed when it was new!

(But don't move here. It's really hot and you'd hate it.)

 

[Guest]

Re: Sales tax on used bike question... (tricklidz1)

Tricklidz,

Your son bought the Buell from his stepbrother? You may want to look into that. I *think* that if a vehicle changes hands between family members there is no sales tax on the transaction. Don't quote me on that, but a long time ago I "bought" a car from my father and I remember having to fill out an affidavit stating the details of the transaction and bringing that to the registry with me. Call your insurance agent and see if they can give you some insight.

BTW, how's the bass and blues fishing your way this time of year?

 

[Guest]

Re: Sales tax on used bike question... (Nick D.)

Nick,
You're right about the "family" thing..I should clarify..he's not really my stepson,.,I just think of him like that!!
I don't do much fishing..too busy with track work...BUT it's been great,,,have some striped bass in the freezer..(caught off shore by my "almost" step-son)

 

[Guest]

Re: Sales tax on used bike question... (Nick D.)

do a non op on it and sell it to him for 5 bucks stating it needs a major rebuild ..
then he can reg. it later on in the week

 

[Guest]

Re: Sales tax on used bike question... (AZ Scott)

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by AZ Scott »</TD></TR><TR><TD CLASS="quote">They tried it a few years ago, but they quickly abandoned it after mass protest.

(But don't move here. It's really hot and you'd hate it.)

</TD></TR></TABLE>

I'm guessing the politicians were afraid of thier gun-toting constituants (sp )

When I was out there a couple of weeks ago it surprised me to see a sign on the door of a local shop - No guns allowed inside !!!

And for the record it's really hot and I love it... Beats the Indiana humidty !

Cheers -

 

[Guest]

Re: Sales tax on used bike question... (thwyld1)

A way to get away with no tax is to claim even trade.

 

[Guest]

Re: Sales tax on used bike question... (thwyld1)

I always thought that you could GIFT 10K per person per year non-taxable.
That is one of the ways you can pass your inheritance money to your loved ones (if you have the money) so that you don't have to pay the inheritance tax (if you have alot of money).

BUT I thought it worked with cars, etc as well.

Irene

 

[Guest]

don't think that would work for vehicles here in Taxachusetts!!

 

[Guest]

Re: Sales tax on used bike question... (ducmonster750s)

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by ducmonster750s »</TD></TR><TR><TD CLASS="quote">I always thought that you could GIFT 10K per person per year non-taxable. That is one of the ways you can pass your inheritance money to your loved ones (if you have the money) so that you don't have to pay the inheritance tax (if you have alot of money).

BUT I thought it worked with cars, etc as well.
</TD></TR></TABLE>

The estate and gift tax rules allow a gift of $11,000 of value per person per year without having to file a gift tax return. You can gift more but then you eat into your lifetime exclusion and have to file a return to record it. It works with all property whether it be real estate, cash or vehicles. The issue comes in when you have to register it with each of the states having their own set of vehicle registration and/or sales tax rules. Gift tax and sales tax are two different tax authorities.

 

[Guest]

Re: Sales tax on used bike question... (Nick D.)

i picked up my 998 in NC and have to get it titled here still (once it is running) after an out of state inspecction is done. There was no place on the back of the title to state purchase price. I wonder how the state of Ohio will want me to prove what i paid in a private transaction?

 

[Guest]

Re: Sales tax on used bike question... (throttlehead)

I bought mine from Georgia and like your title there is not a space for a purchase price. All they SHOULD do is ask you how much you paid for it. I told them $100 and paid my $7 in taxes.