To pay tax or not?
#1
To pay tax or not?
I bought an acura from a out-of-state dealer, he didn't charge me sales tax. Then later I realized I had to pay about 7% sales tax to DMV. Am I really liable for the sales tax? The seller was advertised the car as a personal car. We met at a partking lot, I just gave him the money and he gave me the title and a purchase contract with no sales tax on it.
#3
Racer
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When you go and register the car and show proof of sale, you have to pay the tax of the state that you are registering it in on the purchase price.
So yea, even though you bought it out of state, if you register it in your state, you have to pay tax.
So yea, even though you bought it out of state, if you register it in your state, you have to pay tax.
#5
The Talk of New York
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Originally Posted by Studio
I dont have any carbon paper, so I usually write two purchase agreements. Some times I also get dyslexic and get my numbers mixed up
i bought my car for $11,800 and on the registration form I accidently forgot to put down the 11's infront of the 800
#6
Indeed Sir
If you would care to give me the tax due the State from this transaction- I will glady take it there (stopping only to buy a hamburger for which I will glady repay you on Tuesday) and turn it over for you, CASH ONLY PLEASE
Who would give a private seller money for tax and even expect them to do the right thing!
I sell a car, I go to DMV with the person so the car is transferred out of my liabilty and I know it for fact.
A popular thing is to buy a cheap/broken used car with current tags and never register it because one has no insurance -no drivers license -no green card -whatever, but guess who DMV says still owns the car and is LIABLE FOR ITS TICKETS AND ACCIDENTS-YOU - until they have that actual reg change. And I do not mean the piece you mailed to DMV- the actual reg change where they get MONEY for transfer fees and tax and on and on.
Its always buyer beware
And trying to outsmart the DMV understating your cars sales price, well they have a list of what goes for how much- they are not stupid, but its YOU that gets the perjury charge
Could even come back to bite you if car were totalled
Insurance ask DMV for the transfer value you stated ooooops!
Only 1800 dollars for an 02 TL wow!!!!!!!!!!!!!!!!!!
If you would care to give me the tax due the State from this transaction- I will glady take it there (stopping only to buy a hamburger for which I will glady repay you on Tuesday) and turn it over for you, CASH ONLY PLEASE
Who would give a private seller money for tax and even expect them to do the right thing!
I sell a car, I go to DMV with the person so the car is transferred out of my liabilty and I know it for fact.
A popular thing is to buy a cheap/broken used car with current tags and never register it because one has no insurance -no drivers license -no green card -whatever, but guess who DMV says still owns the car and is LIABLE FOR ITS TICKETS AND ACCIDENTS-YOU - until they have that actual reg change. And I do not mean the piece you mailed to DMV- the actual reg change where they get MONEY for transfer fees and tax and on and on.
Its always buyer beware
And trying to outsmart the DMV understating your cars sales price, well they have a list of what goes for how much- they are not stupid, but its YOU that gets the perjury charge
Could even come back to bite you if car were totalled
Insurance ask DMV for the transfer value you stated ooooops!
Only 1800 dollars for an 02 TL wow!!!!!!!!!!!!!!!!!!
#7
Suzuka Master
Originally Posted by 01tl4tl
Could even come back to bite you if car were totalled
Insurance ask DMV for the transfer value you stated ooooops!
Only 1800 dollars for an 02 TL wow!!!!!!!!!!!!!!!!!!
Insurance ask DMV for the transfer value you stated ooooops!
Only 1800 dollars for an 02 TL wow!!!!!!!!!!!!!!!!!!
If the transacation happended in cash, there is no way for them to know how much you really paid for the car. Perhaps the guy is really nice, or very rich, and sold it to you only for 1,800 . Who knows, maybe he is your friend.
But it would certainly raise an eyebrow in DMV, maybe they would call the seller and confirm that, who knows.
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#8
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Originally Posted by russianDude
Insurances don't ask that, the purchase price is irrelevant. All it matters is the title, year, make, and condition (every insurance now has inspection if you are getting comprehensive coverage).
If the transacation happended in cash, there is no way for them to know how much you really paid for the car. Perhaps the guy is really nice, or very rich, and sold it to you only for 1,800 . Who knows, maybe he is your friend.
But it would certainly raise an eyebrow in DMV, maybe they would call the seller and confirm that, who knows.
If the transacation happended in cash, there is no way for them to know how much you really paid for the car. Perhaps the guy is really nice, or very rich, and sold it to you only for 1,800 . Who knows, maybe he is your friend.
But it would certainly raise an eyebrow in DMV, maybe they would call the seller and confirm that, who knows.
I didn't put down $1,800 on the registration form, I put down $800 on the form
oh, and it did actually raise the eyeborw of the lady who was processing the application, and she started giving me a bitchy attitude about the signiture of the seller not matching on the form and title. (the seller never even came with me to register the car)
So I had to sit there for like the next 30 mins trying to trace over the signiture and practice it, and then when I finally got it right, i filled out a new registartion form, and got a really nice lady to process the application
#9
Suzuka Master
I known when people transfer car ownership inside the family, they make it look like someone bought it for $1 to avoid paying taxes. In theory you could do the same for non-relatives, but because it raises an eyebrow of the goverment agences its probably not a good idea to do it. But if seller and you both stick to the same story and its a cash transaction, there is nothing they can do. For 10K its like $700 in taxes, they won't bother doing investigatioons to recover $600-700 in taxes.
However, if you buy new Bently or Ferrari for $800, then I can guarantee it will be throughly investigated
However, if you buy new Bently or Ferrari for $800, then I can guarantee it will be throughly investigated
#10
NiGhT rIdEr
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when i registered my 95 accord i put down $500 and the women told me that i wouldnt be able to do that. so i told her there was a lot of things wrong with and she wrote a list of all the things that was wrong (i made all of em up)
if u put a price too low they can make you pay taxes on the book value. about 2 years later after i already got rid of the car i started recieving letters in the mail telling me that i owe more money in taxes because they said the car was worth more than what i paid for it. i called them up and argued with them and told them to go fuck themselves.
if u put a price too low they can make you pay taxes on the book value. about 2 years later after i already got rid of the car i started recieving letters in the mail telling me that i owe more money in taxes because they said the car was worth more than what i paid for it. i called them up and argued with them and told them to go fuck themselves.
#13
Senior Moderator
Originally Posted by TypeSDragon
You can always ask the seller to put in a lesser value in the proof of sale. Usually, they will do it since you pay them already.
#14
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Originally Posted by TypeSDragon
You can always ask the seller to put in a lesser value in the proof of sale. Usually, they will do it since you pay them already.
#15
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you can always gift it....... in my area we have to get a shop recipt stating that it has such and such problems......or if you get a nice person they just look the other way ;-)
#16
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i passed my car off as about 500 because its salvaged even though i got it for 9500
i was paranoid bout it but since my uncle whose been an insurance specialist for a decade told me dont worry about it, i didnt and its good.
i was paranoid bout it but since my uncle whose been an insurance specialist for a decade told me dont worry about it, i didnt and its good.
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