pay tax or anything on traded vehicles?

[WiMiMc]

other than title transfer are there any other "fees" i would have to pay at the DMV?

[1QWIKBIRD]

I have never traded cars, but I once traded landscape trailers and they weren't really sure how to handle the tax issue and let us go with just the title fees. Don't be surprised if they go to blue book value or something?

Chris

[Vinnie Madrox]

I just traded my grand prix gtp for my z28. We traided with him putting $200 cash on top. On the title for tge camaro (going into my name), under sale price, i put "gift". Didnt have to pay any sales tax or fees at all. Just title and reg transfers.

[WiMiMc]

hmm i may do that, i remember my friend bought a truck (beater) and put like 20 bucks for the price haha. the guy at the dmv asked if thats how much he paid, he said yup, and that was that

[Vinnie Madrox]

They can't deny it and not let it go throughbat the dmv, they have to take your word for it unless something was erased/crossed out/whited out/ect.

Back in 2005 bought my first gtp. i bought it for $5,500 and put $2,000 on the title to save myself some money on tax. I got a letter in the mail from the US Treasury about a month later saying the car is worth $6,500 in the current market and i had 30 days to pay tax on the rest of the value of the car. Bull lol. I ignored the letter and nothing ever came of it.

Then in 2007 i bought my second gtp for $2,700 and again, put $2,000 on the title. They sent me another letter saying the same thing, that it was worth $6,500 in the current market (2 years later, odd). So again i ignored it and nothing ever came of it. You will be fine lol

[Adam1978]

my aunt gave me a 1999 suburban with a blown tranny, so all i had to do was replace it and go, we put "Gift" on the title and the lady wanted a note from my aunt saying it was a gift... we got back in line to someone else and went right through, got a bill for the blue book value in tax, then my aunt sent a note and we were fine lol i've gone through about 8 cars so far and thats the only time i ever had a problem haha

[Mike]

They can't deny it and not let it go throughbat the dmv, they have to take your word for it unless something was erased/crossed out/whited out/ect.

Back in 2005 bought my first gtp. i bought it for $5,500 and put $2,000 on the title to save myself some money on tax. I got a letter in the mail from the US Treasury about a month later saying the car is worth $6,500 in the current market and i had 30 days to pay tax on the rest of the value of the car. Bull lol. I ignored the letter and nothing ever came of it.

Then in 2007 i bought my second gtp for $2,700 and again, put $2,000 on the title. They sent me another letter saying the same thing, that it was worth $6,500 in the current market (2 years later, odd). So again i ignored it and nothing ever came of it. You will be fine lol


they will come back eventually. and no they do NOT "HAVE TO TAKE YOUR WORD FOR IT"

if you dont know an answer, dont give terrible advice just because you think you got away with tax evasion

[Vinnie Madrox]

It's not terrible advice, it's personal experiance. It's been 3 1/2 years since the last time i heard from them, i'm sure they won't "come back" lol

[Mike]

remind us that when you have a lein on your house and they are garnishing your wages.

lying to the dmv and in turn the state and federal governments, and SUGGESTING tax fraud and evasion is terrible advice... wether you got lucky or not

[greenformula92]

if you do a straight up trade the best way to go about this with no complications is to make a document for both parties, signed by both parties, and notorized....thats the best way because than the state can't harrass you as they see fit, because if they can, they will

[JL8Jeff]

You pay full tax on the purchase price if you buy from a private individual. If you trade at a dealer, you pay the tax on the difference. If you trade privately, you're supposed to pay tax on the current market value of the vehicle. If you do pay a really low price on something, have it notarized and dmv won't question it. Don't mess around with taxation, their computers are pretty good and they'll catch up with you eventually. I found out, but didn't realize I had made a mistake thanks to the stupid Homestead Rebate. :nod:

[Vinnie Madrox]

LoL

[sweetbmxrider]

I would write trade. My dad gave me a car and I left the price open, never got a question or a letter about it.

[Tru2Chevy]

It's not terrible advice, it's personal experiance. It's been 3 1/2 years since the last time i heard from them, i'm sure they won't "come back" lol

Just an FYI....a pretty close family member of mine is now having wages garnished (15% taken from every paycheck they get) for taxes that went unpaid to the state of NJ in the early 90s. This just started a few months ago. Don't assume anything, and if I were in your shoes I would go back to them with some sort of documentation stating what you actually paid and offer to pay the difference now. Interest and penalties add up very quickly and 10 years from now you could end up paying FAR more than you thought possible.

- Justin

[JL8Jeff]

And I just got another letter saying I owe the difference for my 2007 tax return due to the same problem! I guess I can expect another one next year as well. :-?

[Vinnie Madrox]

LoL

[maroman88]

i duno what you're loling at?

when i bought my 98 trans am, i put a slightly lower price on the title, they sent a letter about the book value, in return i sent them copies of some receipts for work the car needed... aka tires, 'new' exhaust (slp loudmouth), and a few other small items, never heard a word back. so i guess if you prove your case of why u paid 'less' theyll leave u alone

[Vinnie Madrox]

But thats my point. I ignored the letter, and never heard from them again. U sent in documentation, and got the same response....

[HeadlessNorseman]

But thats my point. I ignored the letter, and never heard from them again. U sent in documentation, and got the same response....




Just an FYI....a pretty close family member of mine is now having wages garnished (15% taken from every paycheck they get) for taxes that went unpaid to the state of NJ in the early 90s. This just started a few months ago. Don't assume anything, and if I were in your shoes I would go back to them with some sort of documentation stating what you actually paid and offer to pay the difference now. Interest and penalties add up very quickly and 10 years from now you could end up paying FAR more than you thought possible.

- Justin

hmmm.....

[Frosty]

But thats my point. I ignored the letter, and never heard from them again. U sent in documentation, and got the same response....

So because it "seems" like you got away with tax evasion it's OK to suggest it to everyone else? Yeah, great move genius. The state never forgets. The government never forgets. They may or may not come after you but they have the right to. If they feel like it they will. If you somehow come up on the radar they'll come after you.

It's cool though, keep suggesting that breaking the law is awesome and that other people will get away with it. Keep laughing about, hopefully it won't come up when you try to buy a house or something.

[Vinnie Madrox]

I will :-P

[emolineaux]

when i bought my 96 dakota for 1k i put that down and got a letter a few months later saying i owed taxes on $3500 (thats what they valued the truck at) i just had to call up and tell them that there was stuff wrong with it and everything was ok.

now my sonoma i bought for $600 and only put $100 down and never heard a word from anyone.

ive also done the trade/gift stuff and never got a letter.

[HeadlessNorseman]

other than title transfer are there any other "fees" i would have to pay at the DMV?

just to answer this, its the basic title/registration fee. Its like 140 dollars to get a title and new plates, 90 something if you are transfering plates. PLUS the sales tax you write down, which is the the standard 7%

[NastyEllEssWon]

I will :-P




lol non response doesnt mean the problem went away. since you chose to not respond to them they're probably just letting interest build up until they deem it a nice enough hike for them to use their resources to pursue you. not only are you not being smart about this....but also openly admitting it, in public, on a forum, using your real name as your handle and posting pics with your license plate in visible plain view...


http://www.magmalliance.com/images/madrox3.jpg


lol not smart man. you know there are people that work for state agencies, taxation and dmv on this site too right?? :wink:

[Frosty]

Eh, what do you know? Didn't you get the memo? The younger crowd knows everything. ;). When he tries to get a house and gets a surprise he'll know what the deal is....

[BonzoHansen]

http://wiki.urbandead.com/images/4/45/Beat_Dead_Horse.jpg