LEGALLY avoiding sales tax

short and sweet....
Im looking at buying a Diablo and am not thrilled about paying sales tax on a car that the original owner already did. So rather than paying 6% and pissing away around 10k I was wondering if I could legitimatly rent out a POS place in some state with no/low sales tax for a month or even 2 or 3, then register and title it there, heck I could even live in it for a bit if thats a problem. All I need is something like an electric bill to prove Im there to the BMV/DMV when I go to pay any (if any) tax, reg., and plates.

So anyway will this work??? If it's legit and I live there I don't see why not.

If it can, any ideas where? Im in Indiana with 6%, I know alot of you guys are getting screwed with higher rates, but where is it less??

 

Just pay the tax and be done with it, lest you be lumped together with Art...

 

You would have to keep that place to keep it registered there wouldn't you. When it comes time to renew if you don't still have the place you would have to register it at home and pay the taxes then, or rent another place. I guess you could keep renting places as long as you have the car. I wouldn't want to have to deal with the hassle.

 

if you can buy a diablo, 10k will mean nothing to you once you see some costs if something breaks

 

Alaska, Delaware, Montana, New Hampshire, and Oregon are the five states that currently do not impose general sales taxes at the state level.

 

and you do NOT want to go to delaware.... it is worse than NJ....

 

Delaware's not too far



and I dont think I'd have to pay sales tax in Indiana after they expire, just reg. My dad for many years registered his car at his parents home in Chicago where his parents lived, after they died he didnt have to pay Indiana sales tax to get Indiana plates and reg.


anyone in Delaware wanna help me out lol.....or know of cheap arse places and BMV/DMV rules for registering/titling and plating??

 

Montana is a tax free state, also no Safety or IM. Find some farmer with a barn for rent and register it there. In the particular county I have my cars registered, there is a "Life Time Registration". If your vehicle is over 10 years old you only need pay 4 years of registration fees and the car will have a "Life Time Registration", never needing renewal, Safety or IM.

 

Ill need that 10k if something breaks , plus its a Diablo 6.0, so I think Ill be safe for a bit

 

crap! lol

we'll see, it may be worth 10k

is there any place closer to me with LOW sales tax rather then none...like 2% or something??


hahah, i love your idea pimpdaddy!!!

 

All you need is a PO box to register and liscence the car. Anybody want some help?

 

I'm a freeking farmer, kind of anyway.

 

Last time I registered one in Indiana they needed 2 or 3 peices of evidence that you did infact live where you said you did, like bank statement and water bill or something. But its changed a couple times since then cause it was "racist" and too hard for some to prove.

wow 11 views and 10 replys already!!!!

 

Can't you just do a trade?

....few bags of gold coins for the Diablo

 

Know of a state that doesn't require a notarized bill of sale to register? My lawyer is trying to get one of my cars registered right now. If I can find a state that doesn't require a notarized bill of sale and all I have to do is get a P.O. Box there and get them to give me a new title then I can transfer everything down here.

Maybe this out of state stuff isn't so nuts after all. lol

 

The IRS is probably one of my least favorite organizations to play chicken with.

Tread carefully my friend. We've all thought the same as it relates to avoid having to pay Uncle Sam. There's a good reason most of us choose to acquiesce.

 

ahhaha, I know!!! thats why I want to do it legally. Even if I have to live there for a bit. Sticking it to the man by playing by his rules would be sweet!!!

 

You have to pay the sales tax where you have the car registered. Example I bought my car in NC, had to register it in MD, where I live=pay sales tax in MD. If I had a DE address--no sales tax--BUT I would have to keep the DE tags on it. If you get caught in MD with other states plates and living in MD and not in the military. Not good--Called a Foreign vehicle law. You have 60 days to switch the plates to MD. 1st offense $280. Far cry from 10k but it gets worse after that. The only way to do this properly is to have a residence in DE the entire time the car is registered there. Not worth the hassle in my opinion. I have another option but you will have to PM me for that one!!!!

 

I know that I think I could get it reg./plates, ect in Del. for mabye 3 months...pay no tax then move back to Indiana and only have to pay for the reg and plates...thus saving 10k!! wooo.

Heck its winter here for 3 more months anyways!!!!!

Ill PM ya still

 

If you have a relative in one of the five states mentioned and they are willing to say you live there, that is a way out.

Be careful. When you avoid the sales tax on the car by saying you live in another state you open a can of worms in regards to your real estate tax write off. The IRS could confront you saying when you registered the car in say Nevada, you claimed that as your primary residence, therefore you can not take the RE tax deduction off of your home in Indiana since it is now not your primary residence in their opinion. A IRS audit will cost you far more than $10,000 in accountant and lawyers fees, not to mention your time. Best bet is to stay off their radar completely unless you have ability to really cheat to the tune of a million or more a year on your taxes like the Al Capone did.

 

I live with my parents ...SCORE!!! lol

 

Use the $100,000 to get your own place.

 

I was thinking the same...

 

ahahha, pshh
I knew that was coming. I have my priorities lol, though they may be backwards to you guys, plus my own home/apartment would reeeeeeeeally make it hard to get a Diablo anytime soon.

 

Dan PM sent----There are always ways around everything!!!!!!!!!!!!!! Let me know what you think... In PM form of course...