Business History Books » Business Consultant » ??HOW to avoid state sales tax when selling car???
??HOW to avoid state sales tax when selling car???
Question:
Yes, you should "give" the car to your brother. Any compensation should be part of a complex agreement that you two reach. 
Jim J. Graham
Response:
You are entitled to a $10,000 exemption per person you give to so that the $7000 would fall below this and you would be exempt. Even if it were not fuck the IRS and dont file the gift tax return — there is no way for them to find out! Best solution to avoid sales taxes is to do what I do with my classic cars. I dont sell them instead I encorporate them and sell the corp. Better still, dont bother filing the encorportation papers and just make up a name for the corp. I usually use the year and model of the car. The registration people have no way of checking to the corp is real or not.
Response:
: You are entitled to a $10,000 exemption per person you give to so that the : $7000 would fall below this and you would be exempt. Even if it were not : fuck the IRS and dont file the gift tax return — there is no way for them to : find out! : Best solution to avoid sales taxes is to do what I do with my classic cars. : I dont sell them instead I encorporate them and sell the corp. Better still, : dont bother filing the encorportation papers and just make up a name for the : corp. I usually use the year and model of the car. The registration people : have no way of checking to the corp is real or not. GA tried imposing a sales tax on private-party used-car sales. So may people complained that they stopped doing it and refunded all the money collected. If your state is doing it and you don’t like it, organize and complain! (Especially since this is an election year.)
Response:
: GA tried imposing a sales tax on private-party used-car sales. So : may people complained that they stopped doing it and refunded all : the money collected. If your state is doing it and you don’t like : it, organize and complain! (Especially since this is an election : year.) Hmmm. I thought I posted a followup on this, but maybe only in my dreams… Anyway, in Illinois, sales from one family member to another are not taxed, from what I recall when I bought a car from my brother. And sales outside the family go by year of car, not price paid. After all, it’s obvious that everyone would be fudging the sale price if that’s what the tax was based on. — Andy
Response:
hello all, i have already sold my car to my brother but i want to avoid state sales tax… the car is worth about $7,000….SO, i dont want to be stupid about this and say that i sold it to him for a $1 like some people say… SHOULD i give the car as a gift?? How do i go thru that process then?? any other ideas on how to avoid paying tax on car?? — Thanx, Bill Syracuse University ‘92 Go Orangemen SEEEEEYAA
Response:
: hello all, : i have already sold my car to my brother but i want to avoid state sales : tax… the car is worth about $7,000….SO, i dont want to be stupid about : this and say that i sold it to him for a $1 like some people say… : SHOULD i give the car as a gift?? How do i go thru that process then?? : any other ideas on how to avoid paying tax on car?? : Bill There are things called "gift taxes" when you file your federal tax return that are in place so that people do not try to get out of paying taxes. I would talk to an accountant or attorney or someone very knowledgable in the field before trying such a thing. — –Michael Barnett UCS Consultant, Business Site Group, Indiana University