Pitch in?
Yeah, “pitch in” to help pay for wanton and misguided government spending? More like pitchfork in. “Potholes?” LMAO! “Uptight?” More like rabid. Among a million other things, howbout sanctuary cities, free college and driver’s licences to illegals? Pay attention. California is a beautiful place ruined by nutjobs. Couldn’t pay me to live there.
Depends on your home state. I leave mine in Montana for 6 months (high end storage) they would be sitting in my garage anyway. My attorney in Montana said I'm in full compliance in both states and AIG has said that is all good. I have a guy if anyone needs insurance for a set up like this. Just ping me.
Be thankful your state hasn’t (yet) followed British Columbia’s lead. http://canada.autonews.com/article/20180326/CANADA/180329727/b-c-luxury-dealers-blindsided-angered-by-new-25-sales-tax?X-IgnoreUserAgent=1 Sent from my iPhone using FerrariChat.com mobile app
I may just take you up when we transition from our current residence to Montana. BTW, well played. By design, in most cases, it’s difficult, if not impossible, to be simultaneously compliant in two states.
“....characterized by a government spokesman as “one of the ways our government is improving tax fairness and progressivity.” Anything but fair. Brutal money grab.
Cool, CA will be happy to hear it. One less angry guy on the Freeway! Lol. I'm not going to venture into P&R here. My life got infinitely better when I decided to recuse myself from that sub-forum and it's argue for the sake of arguing dynamic. But seriously man, lighten up a bit. Life is short. If you can afford a Ferrari, you've already won the lottery of life, at least financially, which is huge. Being pissed about the rules and governance of a State you don't even live in, and couldn't "be paid to live in" is a major waste of time.
Ye, like there’s no road rage in CA. Could it be punitive taxation and congested roads? So many assumptions you make. You will benefit the most by keeping your lectures to yourself.
It was a joke, man. That's why people write things like "lol", or type little winky faces. So you don't take it too seriously. Anyway, I'll consider the point both clearly missed and ironically reaffirmed all at once. Have a good one.
OK, no problem, no offense. LOL. Nice try with the backhand finish, but, again, you make so many assumptions - all at once. And all wrong.
Love of nervous people in GA. https://www.wsbtv.com/news/local/wealthy-georgians-with-exotic-cars-accused-of-cheating-local-taxpayers/858532353
other states have gone down this road....and lost. https://www.bozemandailychronicle.com/news/out-of-state-car-buyers-use-montana-llc-s-to/article_b4b37d29-e894-523e-b0ed-be7c0bf7e398.html In December 2007, a man named Robert Thomas bought a $351,800 RV at the Dixie RV Super Store in the city of Hammond in his home state of Louisiana. But it wasn’t technically Thomas who made the purchase — a fact a court would later agree with. Instead, it was bought by a Montana company, one formed for the sole purpose of buying the RV. Two years later, when the Louisiana Department of Revenue caught up with Thomas, officials said he owed $49,509 in Louisiana sales tax and penalties, but Thomas appealed — and won.
I was perplexed by some of the comments in the thread.... words like "cheating....etc" are a little mind blowing. Setting up an LLC - and having an asset owned by an LLC is smart tax planning - it's not cheating - there isn't ANYTHING illegal about setting up an LLC and it owning assets - including a vehicle - which in some states is categorized as "real property." Watch Ed Boylins video on this - and his example of his Mercedes that has changed hands and more money has been paid to states then the vehicle originally costs. If your argument is that the vehicle resides in a state - they Hertz, Alamo, Enterprise, Ryder, etc etc etc are all guilty of CHEATING on the state taxes, where those vehicles reside for more than 30 days.
Well then Frank , why don’t you register your car in a Montana LLC and let us know how it works out for you. I don’t want or need to get into a pissing contest with any governmental agencies. As for me , I paid the current tax rate in my state for my rig and will sleep well tonight. Best , Kirk.
Kirk, your state is reasonable. Others such as VA are egregious. Not only do you not get credit for tax paid when you trade in but you also pay annually ~4% on the NADA book value which is super optimistic. They are stealing from people. The income tax as well as property tax on real estate are not that cheap either. They hit you over the head at ever turn so some feel it is well worth it.
Maybe many of us have already. And LLC has its own EIN - it’s own entity and it’s own purpose. Nothing illegal about it - Tax planning isn’t tax cheating. You said “your rig” - section 179 “deduction? “
I’m guessing anyone buying a vehicle that qualifies - through their business entity - is “cheating” on their taxes - SMH. I sleep well at night taking fair and legal tax deductions. https://en.m.wikipedia.org/wiki/Section_179_depreciation_deduction
I think this is all so confusing and state variable. I live in CA where we have an 8% sales tax really high registration fees that seem to go up every year. It is almost worth it to take a chance with the Montana LLC. On a new F car you would probably save at least $30K. I think I will ask some local LEO friends how much they go after this. J
GA has a form you fill out of you buy a vehicle in GA that sets you up for “perjury” when you license the car in another state. If you buy it out of state - it doesn’t apply. Every state is different - I’d talk to an attorney and CPA - and remember - if you’re registering the vehicle in an LLC you have a stake in - the vehicle will have to be registered in that LLCs name. You’ll want to ensure your insurance company is acceptable with that. Sent from my iPhone using FerrariChat.com mobile app
Generally you will need a commercial policy which is about 30% - 40% more but still huge savings depending on where you reside. This will also allow you to depreciate the asset and deduct the associated expenses. If you live in a state like VA that has heavy property taxes you can no longer deduct on your federal returns this is certainly worthwhile.
We did the Montana LLC thing when we bought a very expensive motorhome and tow car. We saved many tens of thousands of dollars in sales tax by doing this. We subsequently registered another expensive (but common) car using the LLC and saved big there too. The cost to setup the LLC was about $1k and the yearly cost is somewhere around $500 for registration and legal fees. I live in Tennessee where there is no personal property tax. Insurance wise, we used USAA and there was no need for a commercial policy. It was just another vehicle. Later, we switched the motorhome to a different company as USAA was not competitive there. Still, no need for a commercial policy. We had an accident (not our fault) with our regular car registered in Montana and it was handled without a question. Not by the police, not by the insurance company, not by the person at fault. Their insurance company paid the bill, no problem. For my Ferrari, I decided to register the car in Tennessee as it is too visible and obvious. While we have no personal property tax, the lost sales tax on an expensive and obvious car might be enough to cause some interest in the state's taxation department. If you want to use the Montana LLC to prevent excess taxation, you need to contact one of the attorneys who handle this practice and discuss it with them. The attorney we used was very upfront and described how we could accomplish our goals and remain completely and totally legal. If you follow their advice, you will have the law on your side. To those that cry about stealing and such, any means by which an entity can reduce their tax burden legally is not stealing. It's smart accounting. Here's a link to the lawyer we use: http://www.bennettlawofficepc.com/
It very well may be worth it I agree. It’s just not a chance I was willing to take. I know of one person here that did it , had an accident and subsequently had even more issues.