- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Is this a loophole option?
Posted on 10/1/13 at 11:10 am
Posted on 10/1/13 at 11:10 am
Selling my truck personally. The buyer gave me cash. I read you can't do an act of donation unless you're directly related to the buyer (in order to avoid taxes). Can we do a bill of sale for like $100 to avoid the taxes of the real price ($5,000)?
6
Posted on 10/1/13 at 11:12 am to LSUengineer12
No. Taxes are paid on NADA value.
Posted on 10/1/13 at 11:13 am to Golfer
So when they go to the DMV to pay taxes, the DMV will look up NADA value, and charge them taxes based on that amount?
So for their sake, no way to avoid taxes other than an act of donation which can't be done?
So for their sake, no way to avoid taxes other than an act of donation which can't be done?
This post was edited on 10/1/13 at 11:14 am
Posted on 10/1/13 at 11:14 am to LSUengineer12
I did an act of donation to some dude I didn't know. Nothing ever happened.
Posted on 10/1/13 at 11:15 am to Broke
Yeah, I guess they can't prove if we're related or not.
Can an act of donation be done directly at a Notary?
Can an act of donation be done directly at a Notary?
This post was edited on 10/1/13 at 11:16 am
Posted on 10/1/13 at 11:20 am to LSUengineer12
At a notary
Posted on 10/1/13 at 11:36 am to Golfer
Since when? It hasn't always been like that
Posted on 10/1/13 at 11:46 am to LSUengineer12
quote:
Yeah, I guess they can't prove if we're related or not.
Can an act of donation be done directly at a Notary?
Yes. Also, we were doing a swap. One vehicle for the other. Straight swap. So I don't know if that comes into play with taxes or not.
Posted on 10/1/13 at 12:01 pm to LSUengineer12
quote:
Selling my truck personally. The buyer gave me cash. I read you can't do an act of donation unless you're directly related to the buyer (in order to avoid taxes). Can we do a bill of sale for like $100 to avoid the taxes of the real price ($5,000)?
If you want to break the law and cheat your fellow citizen, then yes.
Posted on 10/1/13 at 12:43 pm to LSUengineer12
I wouldn't put $100 but you could get away with a lot less than the actual price
Posted on 10/1/13 at 12:52 pm to yellowfin
quote:
wouldn't put $100 but you could get away with a lot less than the actual price
Well apparently it doesn't matter what the price is on the Bill of Sale if they tax based on the NADA value..
Which I'm not sure if that's entirely correct.
This post was edited on 10/1/13 at 12:53 pm
Posted on 10/1/13 at 12:57 pm to LSUengineer12
quote:
Which I'm not sure if that's entirely correct.
It certainly wasn't 17 years ago, but that was 17 years ago
Posted on 10/1/13 at 1:34 pm to LSUengineer12
quote:
Well apparently it doesn't matter what the price is on the Bill of Sale if they tax based on the NADA value..
Which I'm not sure if that's entirely correct.
I "bought" my college car from my Dad (Alabama Resident) to register in Louisiana after graduation. In Alabama, there isn't an act of donation so you just transfer the vehicle for $1.00 or some nominal value between family.
I did this, brought it to the DMV and they attempted to tax me on the NADA value of the vehicle ($7,000). That's when I found out about the act of donation.
Posted on 10/1/13 at 1:39 pm to Golfer
quote:
No. Taxes are paid on NADA value.
Incorrect. The DMV States that:
quote:
Motor vehicle sales tax applies to both motorized and non-motorized property subject to the Vehicle Registration License Tax Law of the State of Louisiana. Motor vehicles include, but are not limited to, automobiles, trucks, motorcycles, motor homes, mobile homes, trailers (boat and utility), campers, and off-road vehicles. In addition to the 4 percent state sales tax, most parishes and many municipalities have a local sales tax ranging from 1 percent to 5.5 percent. The rate of tax is based upon the domicile of the purchaser, not the location of
the seller.
This post was edited on 10/1/13 at 1:45 pm
Posted on 10/1/13 at 1:43 pm to Golfer
Your situation is not quite like the OP.
First, since the car was not donated to you then the state assumed that you purchased it. It's illogical for the state to believe that you paid $1 for a car, and in which case they went an additional step.
quote:
In Alabama, there isn't an act of donation
First, since the car was not donated to you then the state assumed that you purchased it. It's illogical for the state to believe that you paid $1 for a car, and in which case they went an additional step.
Posted on 10/1/13 at 1:44 pm to GreenTrout
quote:
Incorrect. The DMV states that:
None of what you copied has anything to do with determining the value of the vehicle.
Posted on 10/1/13 at 1:46 pm to GreenTrout
quote:
First, since the car was not donated to you then the state assumed that you purchased it. It's illogical for the state to believe that you paid $1 for a car, and in which case they went an additional step.
The car ended up being donated to me. And again the same situation happened when I bought a truck private party. I delivered the bill of sale for $14,000 to the DMV and I watched the DMV clerk look up the NADA value to determine the appropriate value to tax the vehicle at.
Posted on 10/1/13 at 1:53 pm to Golfer
DMV must hate you, because they've never looked up NADA on anything I've brought. Nor can I find any publication stating that to be the offical policy on determing the tax base.
Posted on 10/1/13 at 2:02 pm to GreenTrout
They will use the sales price, but review to determine FMV (with NADA).
quote:
The Office of Motor Vehicles will collect sales/use tax on all transfers of new and used motor vehicles based on the selling price as shown on the notarized bill of sale or invoice. Louisiana state tax is 4%. Your parish and municipality tax may be determined by accessing the Parish and Municipality Tax Table. The total tax charged will include state, parish and municipality if applicable.
Sales/use tax can be assessed on an amount lower than the fair market value if the vehicle has sustained major mechanical or body damage. Documentation regarding this must be presented along with the file.
If a vehicle is purchased through a dealer, the sales tax is based on the total selling price, including any shipping or dealer prep fees less the trade-in (trade-in must be in seller's name and registered in Louisiana) or rebates, if any.
Upon moving to Louisiana new residents must register their vehicles immediately and are subject to the payment of a use tax based on the fair market value. A maximum of 4% credit may be allowed for a similar tax paid in another state against taxes due in Louisiana provided Louisiana has a reciprocal agreement with that state. Proof of payment of tax may be required.
Active duty military personnel entering Louisiana may register and title their vehicle without payment of sales/use tax. Proof must be furnished that sales tax was paid in another state, along with a copy of their military identification.
Posted on 10/1/13 at 2:03 pm to Golfer
From DPS
quote:
Louisiana law requires vehicles imported to this state for use upon the highways of Louisiana to be registered.These vehicles will be subject to a road use tax upon registration. Road use tax due is based upon loan value of the vehicle listed in the NADA Official Used Car Guide book, or average trade-in listed on the electronic (internet) NADA.
This post was edited on 10/1/13 at 2:05 pm
Page 1 of 2
Popular
Back to top
Follow TigerDroppings for LSU Football News