Paying taxes on a private sale truck

First, AS I RECALL, it doesn't really matter what you pay for a used vehicle. The sales tax on a used car will be based on the blue book value. This is so people can't just give cash to a seller "on the slide" while purchasing a vehicle.

Second, the only loophole I know of to get around sales tax is on the trade-in. Unfortunately, this loophole does not apply to private sales. So, if you buy a new car from a dealer for $40k and you trade-in your car for $10k, you'll only pay sales tax on $30k. That rule is not applicable in every state so you'll have to check if it's applicable in your state. Louisiana is one of those states. But, like I said, I'm pretty sure it doesn't apply to private sales (how could it?).

Here in Louisiana

You pay taxes based on the sales price, but if they think you're trying to game the system they will make you pay taxes on the Blue Book value.

If you pay cash, all you gotta do is have the seller put something low like $200 on the bill of sale and you pay a low tax. The blue book did not matter at all. I know of this being done many times.

This. Done multiple times

Oh I know a way….a little afraid of typing it out here though.

quote:

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That truck REALLY cost $18,000. wink/wink. 

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This is the way