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WPsportsman
LSU Fan
In a van down by the river
Member since Jun 2015
1714 posts

Tax question when buying a used truck
I will try to make this simple as I can..
Buying a used truck from private seller. Title for the truck is at the bank on collateral for another vehicle the seller has financed. So he has to pay his loan off to get the title. I will be paying 20g cash and financing 24g from the same bank.. can I give him the cash before hand and get away with saying I’m just paying 24g and save on my taxes? Or do I have to show I paid closer to market value. Market value is about 45? As always Thanks for the advice


iknowmorethanyou
LSU Fan
Paydirt
Member since Jul 2007
6131 posts

re: Tax question when buying a used truck
Why are you paying with weed?


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40
Twenty 49
LSU Fan
Shreveport
Member since Jun 2014
9443 posts
 Online 

re: Tax question when buying a used truck
quote:

I will be paying 20g cash and financing 24g from the same bank.. can I give him the cash before hand and get away with saying I’m just paying 24g and save on my taxes? Or do I have to show I paid closer to market value. Market value is about 45?


If you finance every penny of a purchase, you still owe sales taxes on the full amount.

If you show up at DMV to register it with a bill of sale for a low ball amount, they will likely look up the FMV and hit you with sales taxes on that.

Is the bank that holds the title going to handle the transaction? That could make it safer for you. I would be wary if it's a deal where you hand him the $$ he needs to pay off the loan and then trust/hope he actually does and gets the title.


WPsportsman
LSU Fan
In a van down by the river
Member since Jun 2015
1714 posts

re: Tax question when buying a used truck
It’s a guy I know and trust


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lnomm34
USA Fan
Louisiana
Member since Oct 2009
10431 posts
 Online 

re: Tax question when buying a used truck
quote:

used truck


quote:

paying 20g cash and financing 24g




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51
756
LSU Fan
Member since Sep 2004
13554 posts

re: Tax question when buying a used truck
taxes are based on FMV they look it up in the book. Sounds like he needs to sell the truck bad

I would explain the tax situation to him and get him to come down another grand or two
This post was edited on 3/7 at 2:35 pm


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