| Author |
Message |
Don Vollum (Donv)
Junior Member
Username: Donv
Post Number: 69
Registered: 1-2002
| | Posted on Saturday, April 05, 2003 - 3:56 pm: | |
I believe you can give an unlimited amount to a spouse without tax. However, that doesn't make your scheme seem any more sensible.
With airplanes, they are often purchased here in Oregon (no sales tax), "based" here for 6 months or whatever the rules of the intended home state, and then flown home. |
EFWUN (Efwun)
Member
Username: Efwun
Post Number: 431
Registered: 2-2003
| | Posted on Saturday, April 05, 2003 - 2:45 pm: | |
As noted, the IRS will allow you $11,000 (up from 10) per year, per person. If you need to pay a parent's expense, you can gift $11K from yourself and your wife to each of them, e.g., $44K. Also, remember that a tax-free gift does not absolve the original purchaser from paying tax; e.g, my gift to my parents isn't a tax deduction, that is money I've already declared and paid the IRS for. So, your wife would have to pay the tax, and then you'd have to pay the tax over an agreed value of $11k. Sounds like you're looking for a nice, long audit by the Feds. Advice? DON'T DO IT. |
Dan (Bobafett)
Member
Username: Bobafett
Post Number: 353
Registered: 9-2002
| | Posted on Saturday, April 05, 2003 - 12:48 pm: | |
What if you don't register the car for a few months? Use the temp registration from CA when you drive around, and then wait until the requisite period (if there is one) before registering in FL?
--Dan |
Brian Kennedy (Kennedy)
Junior Member
Username: Kennedy
Post Number: 242
Registered: 3-2002
| | Posted on Saturday, April 05, 2003 - 9:49 am: | |
What was the point of introducing your wife and the gift process? Why would they charge you sales tax, but not her??
But as already noted, unless this is a cheap car, you'll have gift taxes to deal with from the IRS... and those are waaayyyyy higher than sales tax in any state.
The only way to avoid sales taxes is to live in a state that doesn't have them OR to have both parties willing to break the law by lying as to the value of the transaction. And since you said "dealer", the latter is not too likely. And I generally oppose lying, stealing, and criminal acts in general... just an integrity thing.
The one other thing to consider is that if there is another car involved... then you can coordinate an "in & out" transaction such that the dealer records it as a trade-in, and then you only pay sales tax on the difference. (Well, I know that's allowed in Texas.)
Sorry.
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Mr. Doody (Doody)
Member
Username: Doody
Post Number: 960
Registered: 11-2001
| | Posted on Saturday, April 05, 2003 - 9:21 am: | |
as a general rule, either you live in a tax-free state or you don't. if you don't, good luck trying to not pay taxes.
here in MA the accountants are notifying their clients about a new "feature" of the tax forms asking people to declare their out-of-state and internet purchases and pay use tax on them (the same as the sales tax). the law has always been in place, but there's never really been any enforcement except at a commercial level where towns exercise business equipment excise taxes. so they're asking the residents now to voluntarily disclose the total purchases made out of state and via internet and pay the 5% sales/use tax on them. should be interesting to see what happens.
good luck skirting the laws, kurt :-)
doody. |
Ed Christophersen (Dr_c)
New member
Username: Dr_c
Post Number: 24
Registered: 12-2002
| | Posted on Saturday, April 05, 2003 - 8:30 am: | |
I believe that an individual can only give a gift to one person of $10,000 per year without having to pay a gift tax. And, I doubt that IRS would think that an automobile, particularly a f-car, was worth less than 10k. If your wife "gave" you an f-car, I think that she would have to pay a gift tax on any amount over 10k and you would have to pay straight income tax on the same amount. Probably not something that you want to do without checking with your CPA first. |
"The Don" (Mlemus)
Advanced Member
Username: Mlemus
Post Number: 3607
Registered: 8-2002
| | Posted on Saturday, April 05, 2003 - 7:59 am: | |
You'd be better buying a car from a state that does not do this and has no sales tax |
"The Don" (Mlemus)
Advanced Member
Username: Mlemus
Post Number: 3606
Registered: 8-2002
| | Posted on Saturday, April 05, 2003 - 7:58 am: | |
I am fairly sure since you are going to buy it from a dealer here in Kalifornia, that you are going to pay FL sales tax. dealers charge you your home sales tax when you buy cars here.
For Example.
Sales tax in LA County is 8.75%
Sales takes in SD county is 7.00%
(for comparison only, I know the % is wrong)
You live in SD but buy the car in LA, you get charged the SD tax. Same applies for out of state purchases.
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Kurt White (Ferraribooks)
Junior Member
Username: Ferraribooks
Post Number: 73
Registered: 2-2002
| | Posted on Saturday, April 05, 2003 - 7:26 am: | |
I'm going to be buying a new toy from a delaer in California, my question is, can I have my wife buy it for the agreed value & have here name on the title, then after we have paid for it, (No financing involved) can she give me the car as a gift & declare the value as $xx,xxx.xx, then transfer the title over to me?
This would save me a boat load of money in sales tax in Fl. which is currently 7%
If this can't be done, does anyone have any suggestions on how to avoid paying all the sales tax?
Kurt. |
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