| Author |
Message |
Dave328GTB (Hardtop)
New member
Username: Hardtop
Post Number: 43
Registered: 1-2002
| | Posted on Tuesday, March 19, 2002 - 10:33 pm: | |
Basically the question comes down to this: Are you willing to risk a conviction of some sort to save a few thousand dollars? I am not.
Dave |
Octavio Mestre (Alfab4308)
New member
Username: Alfab4308
Post Number: 44
Registered: 7-2001
| | Posted on Tuesday, March 19, 2002 - 5:15 pm: | |
In Florida if the amount you list is more than 10 or 15 percent below the average price for that car you will get an audit letter asking you to either pay up or explain why your car was priced lower. I am almost sure you get hit with a penalty if you pay up and if you lie about why the car was below average price and get caught it's a crime. And I'm sure Joe bureaucrat would love to stick it to a Ferrari owner he busted lying. |
Ernie Bonilla (Ernie)
Junior Member
Username: Ernie
Post Number: 209
Registered: 11-2001
| | Posted on Saturday, March 16, 2002 - 10:53 am: | |
No I'm not in the practice of getting audited, so I won't be doing that. How ever I do know that you can deduct the portion of your vehical registration. |
arthur chambers (Art355)
Member
Username: Art355
Post Number: 294
Registered: 6-2001
| | Posted on Friday, March 15, 2002 - 12:53 pm: | |
If you want to take the sales tax off, you must use the property for a business purpose. This is the best way that I know of to trigger an IRS audit.
Art |
Ernie Bonilla (Ernie)
Junior Member
Username: Ernie
Post Number: 207
Registered: 11-2001
| | Posted on Friday, March 15, 2002 - 11:58 am: | |
In a nut shell don't it. I was tempted to fug on mine but though the better and did the right thing. It was just under $4k, but I sleep well. Speeking of tax is there any way to deduct the sales tax? |
TomD (Tifosi)
Member
Username: Tifosi
Post Number: 370
Registered: 9-2001
| | Posted on Thursday, March 14, 2002 - 3:05 pm: | |
the other thing is everyone thinks a used ferrari costs 100k so when they see 30k-40k they think you are lying |
TomD (Tifosi)
Member
Username: Tifosi
Post Number: 363
Registered: 9-2001
| | Posted on Thursday, March 14, 2002 - 7:30 am: | |
It depends on numerous factors, state, amount he avoided, as well as other factors, probably a fine.
Remember in most states that have a sales tax you are required to pay sales tax on all purchases made where no sales tax or less sales tax was paid. There is a line in your state tax return to include this. So if you order a water pump from CA and have it sent to NJ they probably won't collect sales tax but you need to record the value of the purchase on your return and pay the sales tax to NJ at the end of the year. now with small purchases this is very hard for state governments to monitor and inforce but with a car which gets registered, titled and recorded the state has information it can use to investigate/audit people. Just imagine an auditor looking through the DMV records and sees joe blow bought a ferrari from joe blow2 in California. and also sees john doe bought a vw from john doe2 in PA. who is he going to investigate. I think you know |
RICK ROMERO (Tr90)
Junior Member
Username: Tr90
Post Number: 114
Registered: 4-2001
| | Posted on Thursday, March 14, 2002 - 7:01 am: | |
just curious, anyone knows what the penalty would be if he would have done it and get caught? |
DHutchison (Hutch308)
New member
Username: Hutch308
Post Number: 17
Registered: 1-2002
| | Posted on Wednesday, March 13, 2002 - 4:24 pm: | |
I purchased my 308 from Foreign Cars Italia in Greensboro, N.C. back in 6/2000. They gave me North Carolina temporary plates and collected no sales tax. They sent all the registration info to the Connecticut dmv (bridgeport, ugh) where I paid the 6% sales tax. I drove a tax free Ferrari for 30 days!! |
Frank Parker (Parkerfe)
Member
Username: Parkerfe
Post Number: 688
Registered: 9-2001
| | Posted on Wednesday, March 13, 2002 - 3:36 pm: | |
When I bought my car from Ferrari of New England I paid no sales tax. But a few weeks after registering it in Georgia i got a tax bill for 6% of the sales price which i paid. |
David Albright (Dalbright)
Member
Username: Dalbright
Post Number: 279
Registered: 2-2001
| | Posted on Wednesday, March 13, 2002 - 3:23 pm: | |
I think here in Maryland that if you're registering a vehicle which is less than 7 years old and you do not have a notarized bill of sale, then the MVA will charge you taxes on the blue book value of the car. |
BretM (Bretm)
Intermediate Member
Username: Bretm
Post Number: 1974
Registered: 2-2001
| | Posted on Wednesday, March 13, 2002 - 3:05 pm: | |
I'm not gonna condone it, but I would venture to guess it's one of the most common tax evasions. People do it all the time, but they usually coordinate it. I wouldn't think about doing it from a dealership. |
j scott leonard (Jscott)
New member
Username: Jscott
Post Number: 34
Registered: 1-2002
| | Posted on Wednesday, March 13, 2002 - 11:57 am: | |
I once sold a Porsche to a fellow who reported the wrong price. I got a call from the Calif. DMV and told them the true sales price. He was fined substantially. (I believe that he deserved the fine.) Render unto Ceaser you know. We never error in doing right.
|
Norm Plaistowe (Normp)
New member
Username: Normp
Post Number: 8
Registered: 11-2001
| | Posted on Wednesday, March 13, 2002 - 11:13 am: | |
These are state regulations, so they are all a little bit different. Usually if the seller does not collect the tax at the time of sale the buyer has to pay a use tax at the time of registration. That's why most states call these sales and use taxes.
Sometimes you'll see the guys in California and Washington playing games with Oregon as Oregon does not have a sales tax. Ferrari of Seattle, for example, will deliver a car to Oregon and not charge sales tax, then the car must be registered in Oregon. This is why you see so many highend cars in California with Oregon plates. |
arthur chambers (Art355)
Member
Username: Art355
Post Number: 291
Registered: 6-2001
| | Posted on Wednesday, March 13, 2002 - 10:50 am: | |
Warren:
Everyone else has discussed the tax fraud issue, and they are correct. There is another issue: what if the vehicle is damaged? The insurance carriers will want to know what it cost and will base their settlement offers upon the stated cost. If the number were too low, then there would be trouble, and your friend could get caught on this little scam. He did the right thing. |
Tyler (Bahiaau)
Junior Member
Username: Bahiaau
Post Number: 157
Registered: 12-2001
| | Posted on Wednesday, March 13, 2002 - 9:09 am: | |
I'm surprised the dealer did not collect the tax as well. Your friend did the smart thing. As tempting as it may be, why risk it? |
Martin (Miami348ts)
Intermediate Member
Username: Miami348ts
Post Number: 1573
Registered: 5-2001
| | Posted on Wednesday, March 13, 2002 - 8:16 am: | |
That is considered tax fraud and is white collar crime. Not that that makes a difference in court.
The first car I bought in FLA was a used Mustang Convertible. When the cars were trading at $ 7,000 we bought ours at $ 4,000 because of the overall condition. I did get an audit from the Florida Sales Tax Division questioning the sales price.
As much as I hate taxes, that is not the time to play games.
Here in FLA you have to collect the tax as the dealer. |
RICK ROMERO (Tr90)
Junior Member
Username: Tr90
Post Number: 113
Registered: 4-2001
| | Posted on Wednesday, March 13, 2002 - 7:17 am: | |
Warren:
Your friend did the right thing. The dealer must have declared the value of the car sold to your friend on his books plus has your friend's payment stub as a receipt and must have given him a bill of sale.
|
TomD (Tifosi)
Member
Username: Tifosi
Post Number: 355
Registered: 9-2001
| | Posted on Wednesday, March 13, 2002 - 6:33 am: | |
I am surprised the dealer did not collect the tax, in many states if they are an offical used car dealer they need to collect it on the spot as opposed to the owner doing it later |
89TCab (Jmg)
Junior Member
Username: Jmg
Post Number: 179
Registered: 9-2001
| | Posted on Wednesday, March 13, 2002 - 2:23 am: | |
$$$ and imprisonment in WA state...not sure what kind of tracking they do though. |
Warren L. (Warren)
New member
Username: Warren
Post Number: 7
Registered: 2-2002
| | Posted on Tuesday, March 12, 2002 - 11:56 pm: | |
One of my friend's titled and registered his car recently whom he bought from a used auto dealer. For some reason the used auto dealer did not hand write the price of the vehicle on the sales receipt. He was tempted to write in a much lower price to avoid a hefty sales tax but didn't. What would be the consequences of such an action? Could he have gotten away with it? Are audits unusual in the used car industry? What are the fines?
I keep reasurring my friend that he should not regret doing the right thing. Am I right? |