yjm308 Report post Posted June 6, 2013 A lot of private ads talk of a tax savings if a private sale. Can anyone explain this further? You still need to pay the state transfer tax. Quote Share this post Link to post Share on other sites More sharing options...
adam76 Report post Posted June 6, 2013 Depends where you are buying and where you live. In IL there is a flat tax for cars over 30k on a private party sale, its like 2k. Buying the same car from a dealer would be taxed at ~8-9% for us...so on a 200k car, you are looking at some good savings. Quote Share this post Link to post Share on other sites More sharing options...
adam76 Report post Posted June 6, 2013 Actually it's only $1500 i.e. this is the IL form for paying tax on the sale... http://tax.illinois.gov/taxforms/sales/veh...ut-50-instr.pdf Quote Share this post Link to post Share on other sites More sharing options...
Rouleur Report post Posted June 6, 2013 A lot of private ads talk of a tax savings if a private sale. Can anyone explain this further? You still need to pay the state transfer tax. Depends on where you live. What state do you live in? Some states offer no tax or limited tax for a private party transaction. GA used to be one of them until the end of last year. I think Nevada is another, I cannot remember. Easy to look up though. It does not depend on the state of the seller though. Quote Share this post Link to post Share on other sites More sharing options...
yjm308 Report post Posted June 6, 2013 I live in PA. It is 6% at time of title transfer. Quote Share this post Link to post Share on other sites More sharing options...
Duck life Report post Posted June 11, 2013 Ontario Canada. 13% every time a tile change hands. Insane!! Quote Share this post Link to post Share on other sites More sharing options...
camaro97 Report post Posted June 11, 2013 In the state of New Mexico ... "The tax is 3% of the price paid for the vehicle less any trade-in credit. For non-dealer sales, however, the N.A.D.A. value is used if the declared purchase price of the vehicle is lower than 80% of the N.A.D.A. average trade-in or wholesale value." http://www.tax.newmexico.gov/All-Taxes/Pag...Excise-Tax.aspx Quote Share this post Link to post Share on other sites More sharing options...
Jpegs13 Report post Posted June 11, 2013 Exmaple. Price is 150K for the car. Seller claims you only paid 100K for car. You save 50k in taxes. At 7% sales tax... thats $3500 saved. If he claims you paid 50k for the car then you saved $7k in taxes and so on. Illegal ofcourse. Although I dont see how the state can charge taxes on a car thats been sold 3 or 4 times... NY uses book value unless you can prove otherwise. Eg, wreck, damage etc. They saw thru this type of fraud years ago. Word of advice, it ain't worth the saving to commit the crime. If you can afford the Lambo, you can afford the tax Quote Share this post Link to post Share on other sites More sharing options...
alan7407 Report post Posted June 11, 2013 A lot of private ads talk of a tax savings if a private sale. Can anyone explain this further? You still need to pay the state transfer tax. Living in CA, I have privately bought and sold a few cars. I actually paid $84k for my Lambo, but we made out the receipt for $25k..........saved a ton on the transfer. Remember, most of the workers at DMV don't really have a clue as to actual values of a car. Just make sure you have a receipt signed by both parties. They might not like it, but there is nothing they can do. They cannot tax you for $84k when you have a legal receipt for $25k. Quote Share this post Link to post Share on other sites More sharing options...
ixotuckeroxi Report post Posted June 19, 2013 In texas, they found a way to screw these transfers...if it is sold from a dealership, you cant skew the numbers. If its private, as mentioned above, the price used to be the amount stated on bill of sale. Now, they go buy the value of the car or the stated price, whichever is higher...lame Quote Share this post Link to post Share on other sites More sharing options...
Destructo Report post Posted June 19, 2013 NY uses book value unless you can prove otherwise. Eg, wreck, damage etc. They saw thru this type of fraud years ago. Word of advice, it ain't worth the saving to commit the crime. If you can afford the Lambo, you can afford the tax Bingo. Because you'll end up spending more on attorney's fees when the State comes knocking wanting its "fair share." Quote Share this post Link to post Share on other sites More sharing options...
first44 Report post Posted June 19, 2013 Bingo. Because you'll end up spending more on attorney's fees when the State comes knocking wanting its "fair share." ....and then there's the annual personal property tax hit for those of us in NC. My tax guy told me when I was signing my returns for 2012 that I had the (dubious) distinction of paying the most tax on a vehicle of any of his clients. Oh, and this is DMJ (Davenport, Marvin, and Joyce). A big outfit that does a lot of tax returns. He said this with a smirk. But, maybe he was getting even with me for the ride I gave him in my G a couple of years ago! Quote Share this post Link to post Share on other sites More sharing options...
Modo Report post Posted June 20, 2013 NY uses book value unless you can prove otherwise. Eg, wreck, damage etc. They saw thru this type of fraud years ago. Word of advice, it ain't worth the saving to commit the crime. If you can afford the Lambo, you can afford the tax Exactly. And there's the off chance that it gets wrecked or stolen and the insurance try's to stiff you on cashing out. Quote Share this post Link to post Share on other sites More sharing options...
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