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Started By
Message
This may be a dumb question concerning used car buy
Posted on 9/28/15 at 9:48 am
Posted on 9/28/15 at 9:48 am
anyway,
Is Sales tax applied on private owner sale?
I have no idea .
TIA
Is Sales tax applied on private owner sale?
I have no idea .
TIA
7
Posted on 9/28/15 at 9:48 am to Makinbacon
Yes... It's done during the title transfer... Get the owner to say it's a donation... 
This post was edited on 9/28/15 at 9:49 am
Posted on 9/28/15 at 9:49 am to Makinbacon
Are you asking if the government won't take a cut of something?
Posted on 9/28/15 at 9:50 am to Makinbacon
Yes you pay the tax when you register the vehicle.
You could get the seller to show you paid way less for it on the bill of sale. Not that I condone such actions.
You could get the seller to show you paid way less for it on the bill of sale. Not that I condone such actions.
This post was edited on 9/28/15 at 9:53 am
Posted on 9/28/15 at 9:50 am to Makinbacon
quote:
Is Sales tax applied on private owner sale?
The buyer is responsible for tendering the sales tax when registering for title and license for the vehicle in Louisiana.
dmv.org link
Posted on 9/28/15 at 9:51 am to Ace Midnight
How bad could it bite you if you don't?
Posted on 9/28/15 at 9:51 am to Makinbacon
Yes, a sell price has to be reported when transferring title so that buyer pays taxes. You could lie on the paperwork and say that he's paying much less than the actual sale price to save him some $ on taxes, but that would be illegal. A lot of people do that though
Posted on 9/28/15 at 9:52 am to Pectus
quote:
How bad could it bite you if you don't?
They won't issue tags and registration without it.
Posted on 9/28/15 at 9:55 am to Ace Midnight
How do you know this info? I've never heard of it. Did you do it yourself, or is it supposed to be common knowledge?
Posted on 9/28/15 at 9:57 am to Pectus
I wouldn't risk it.
The DMV has an average valuation of used cars, for example if a party tried to represent that they bought a 2010 Corvette for $2,000 and tried to pay the appropriate tax rate on the $2,000 to the state/local municipality for that transaction, it will red flag you as an underpaying taxpayer.
Remember, the title goes in the purchaser's name, they've got your details.
Rates of taxation on autos vary from state to state as well. The Land Mass' rate for autos is half of Louisiana's. You pay the rate where you first register the vehicle.
The DMV has an average valuation of used cars, for example if a party tried to represent that they bought a 2010 Corvette for $2,000 and tried to pay the appropriate tax rate on the $2,000 to the state/local municipality for that transaction, it will red flag you as an underpaying taxpayer.
Remember, the title goes in the purchaser's name, they've got your details.
Rates of taxation on autos vary from state to state as well. The Land Mass' rate for autos is half of Louisiana's. You pay the rate where you first register the vehicle.
Posted on 9/28/15 at 10:01 am to Pectus
quote:
Did you do it yourself, or is it supposed to be common knowledge?
Pectus - when you buy a car at a dealership, they do everything for you. They collect the TTL fees, they request your license plate, registration and title (unless you finance, because the finance company/bank holds the title). When you do a private party sale, the buyer has to bring the signed title to the DMV to get it registered and request a new license plate. When you do that, that's when they get you for the sales tax.
If you skip that step, when you get stopped, the cops are going to have bunch of questions/tickets for you.
This post was edited on 9/28/15 at 10:02 am
Posted on 9/28/15 at 10:02 am to Pectus
quote:
How bad could it bite you if you don't?
about as bad as charges like tax fraud and tax evasion can get. probably no jail time if first offense.
*hijack alert*
Ace, I spent the weekend back home. Actually stayed in my old neighborhood. Some terrorists or something blew up the OK Allen bridge. Thought there was damn earthquake Sat. morning.
Posted on 9/28/15 at 10:04 am to Makinbacon
Look, I've done this before, but attest it;s been more than seven years. (wink).
When you buy or sell a car private party, never have the sale price be the actual price. Bought a car for $10,000? ask the seller to put $3500.
You will pay nearly 10% in taxes so the lower the sale price the better. If it's a friend or family, fill out an act of donation of a movable form and you barely pay anything in taxes.
When you buy or sell a car private party, never have the sale price be the actual price. Bought a car for $10,000? ask the seller to put $3500.
You will pay nearly 10% in taxes so the lower the sale price the better. If it's a friend or family, fill out an act of donation of a movable form and you barely pay anything in taxes.
Posted on 9/28/15 at 10:06 am to soccerfüt
quote:
The DMV has an average valuation of used cars, for example if a party tried to represent that they bought a 2010 Corvette for $2,000 and tried to pay the appropriate tax rate on the $2,000 to the state/local municipality for that transaction, it will red flag you as an underpaying taxpayer.
Well you have to be smart about it, but on the other hand, they never see the car and do not know it's shape. A Corvette may draw attention, but a 2010 Camry going for $2k wouldn't draw an eye.
Posted on 9/28/15 at 10:07 am to Rebel
quote:
Ace, I spent the weekend back home. Actually stayed in my old neighborhood. Some terrorists or something blew up the OK Allen bridge. Thought there was damn earthquake Sat. morning.
Yeah - my youngest lives down that way - she heard it. I was at Camp Beuregard when it all went down.
Posted on 9/28/15 at 10:08 am to Makinbacon
yes, you are required to pay taxes...
Obviously, you can lie about the sale price of the car. They do look at what the car should be valued at. However, let's say the car had a blown engine and transmission, that'd greatly affect the value.
maybe if the buyer claimed such, and the DMV didn't check, you could pay less taxes...
I'm not saying you should lie to the government... but if you wanted to no one would check.... Just sayin'..
Obviously, you can lie about the sale price of the car. They do look at what the car should be valued at. However, let's say the car had a blown engine and transmission, that'd greatly affect the value.
maybe if the buyer claimed such, and the DMV didn't check, you could pay less taxes...
I'm not saying you should lie to the government... but if you wanted to no one would check.... Just sayin'..
Posted on 9/28/15 at 10:09 am to Napoleon
quote:
Bought a car for $10,000? ask the seller to put $3500.
You will pay nearly 10% in taxes so the lower the sale price the better. If it's a friend or family, fill out an act of donation of a movable form and you barely pay anything in taxes.
What happens when you cash that check for 10k and not 3500? Or what about donating to an individual then getting a large sum from that individual later?
eta: this is assuming people are actually looking for it
This post was edited on 9/28/15 at 10:10 am
Posted on 9/28/15 at 10:11 am to stout
quote:
You could get the seller to show you paid way less for it on the bill of sale. Not that I condone such actions.
i 100% condone the actions of minimizing the government getting a cut of a transaction between private citizens. but i don't condone lying.
don't know what to do with that, but that's where i sit.
Posted on 9/28/15 at 10:12 am to 3nOut
Write 2 checks
3000 for the car
7000 for the limited edition floor mats
3000 for the car
7000 for the limited edition floor mats
Posted on 9/28/15 at 10:15 am to Rebel
The city blew up the bridge right? My dad told me they blew it up, but I assumed it was because of the new bridge.
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