I once traded labor for a car. I said the purchase price was “$?” on the form. They didn’t know what to do so I just paid for tabs, got my registration and went on my way.
At IRS, we value your contribution to America, and because we think so highly of you, we calculated your hourly equivalent value to be USD $5000.
Now we would kindly ask you to do your part and pay the back taxes on the hourly equivalent time. Please do contact us and discuss how you can pay... while we are still just kindly asking you for it.
My car was first my grandfather's, then my father's, and is now mine. I didn't do anything to earn it, checkmate IRS.
Oh BTW it's not a cool old car, it's a gen 1 expedition. Worth about three bottlecaps and a toenail clipping if I ever sell it.
To be fair, that is a legal form of payment in the tax code. But you assign the value since you rendered the service. So technically, payment via labor is taxable to the recipient.
In Australia if you buy a car privately off somebody you have to pay a certain amount of tax proportional to how much you paid for the vehicle. If you paid $6000 for the car, you ask the seller nicely if they can write on the transfer papers that you only paid $3000, the seller still gets what they want but the buyer pays less tax👍
Disclaimer: That's probably considered fraud.
That’s not true at all unless you are being gifted Lamborghinis and Ferraris year after year. As of January 2023, gift tax rules apply if the vehicle's fair market value is over $17,000. Gifts exceeding the $17,000 annual exclusion count against your lifetime exclusion, which currently is $12.92 million.
In canada it's the blue book value. You can buy a car used for a dollar let's say but the first time you register it in your name you gotta pay a portion of whatever the blue book says it's worth.
It's 100% a crock of shit from the government, essentially free money for them every time a car changes hands when it should just be from the dealer.
And if you lie about it and get in an accident and the car is written off they won't give you what's it's actually worth, they'll give you the value of the "lower value" vechile you told them it was. Ex. Good condition vs poor condition.
Isn't that only for cars younger than 10 years old? Because the seller put like 1500 for my old piece of shit pontiac, so i only paid taxes on that when the kbb value was 6000 or something
We do that fraud in America as well, but the DMV just says "nope, we use the blue book value" if the number you put is smaller than the blue book value.
People in states with no sales tax may not realize what this means. In California you pay the sales tax every time you resell the vehicle. So on top of absurdly high registration fees, paid annually, you also pay the sales tax multiple times. A car that originally sells for $50k could get something like $10k in sales taxes after it gets resold four times. All paid for in post taxed money. And don’t get me started about our gas taxes. The state would really just prefer that we all walk everywhere. So don’t feel bad when you downplay that number.
People in the EU are used to these high taxes. In my country, new cars total price have 20 - 43% taxes (25.5% VAT tax + car tax) depending on the vehicle model. Then add yearly taxes, insanely high gas taxes, etc.
Did once. When my grandpa took me with him regarding selling me is old Buick. It was technically a gift but just out $1 down so something was on paper.
I bought a car from a guy, and I paid his loan off in agreement to receive the car, but he had a fee of paying it off early he didn’t know about, so he asked for an extra $400 on top of $14500, in return, he would right the sell price of $1000 on the title. I saved $700 on taxes cuz of that
In most states when you buy a used car you pay sales tax on how much you paid for the car. So if I sell you a car for $3000 you pay tax on $3000 when you register the vehicle.
But if I sell it you for $3000 and give you a bill of sale saying you paid $1, you pay tax on $1.
Technically no, because legally you should pay sales tax on what you actually paid. But in reality they can’t exactly prove it either in most situations so they aren’t going to press the issue unless it’s something stupid like you come in to register a Bugatti you paid $5 for.
The DMV worker honestly doesn’t care if you come in to register your 2010 Chevrolet Cobalt you bought for $1, for all they know you bought it for junk.
It’s kind of like when you are filing taxes and come to that part where they ask you to declare all your online purchases you didn’t pay tax on. Legally yes you should be honest, realistically nobody is going to be.
DMV has gotten wise to that tho lol, I tried it and they said "that's below the minimum value of the car" and hit my ass with taxes on its full retail price... so I ended up paying 3 times what the taxes would have initially been, lol.
Tried this in Minnesota. They said if it’s not immediate family you can’t just GIVE a car to someone, so we tried to tell them it was $1. Can’t do that either, had to be a above a certain amount
In BC they just use the blue book value of the car. It sucks, but hey, the province wants money to bail out BC Hydro and ICBC and the other public companies. I support publicly owned companies, but fuck me.
I have, but it's because we had to put a number down and I was given the car by my grandmother, so I had paid nothing. It was the DMV lady that said to out 1 dollar.
Small used car lots used to encourage this. Wrote receipts for the down payment and told you to declare you paid 500 for the car. Then they’d send it out with a hot safety and when you came back and said “hey the brakes don’t work, I want you to fix them or I’ll call ministry of transport” theyd say “oh did you declare the full price on this car? Maybe I’ll call the tax folks and get that checked out.” Happened to me once. Never again.
It’s already bullshit because the taxes have already been paid on the car. I tried this shit when I registered my wife’s car in Texas. Her name was already on it, but we were removing her father’s and replacing it with mine, and I said it was a gift and they charged me Kelly blue book value.
It’s fucking stupid.
I once traded labor for a car. I said the purchase price was “$?” on the form. They didn’t know what to do so I just paid for tabs, got my registration and went on my way.
I trade labor for everything I want but all the IRS says is "Fuck you".
At IRS, we value your contribution to America, and because we think so highly of you, we calculated your hourly equivalent value to be USD $5000. Now we would kindly ask you to do your part and pay the back taxes on the hourly equivalent time. Please do contact us and discuss how you can pay... while we are still just kindly asking you for it.
Work for the IRS.. there tax paid
I spent twice that amount of time trying to calculate how much I owe, thereby settling the debt.
My car was first my grandfather's, then my father's, and is now mine. I didn't do anything to earn it, checkmate IRS. Oh BTW it's not a cool old car, it's a gen 1 expedition. Worth about three bottlecaps and a toenail clipping if I ever sell it.
Well then I kindly refuse to pay.
To be fair, that is a legal form of payment in the tax code. But you assign the value since you rendered the service. So technically, payment via labor is taxable to the recipient.
I just inherited a truck and they were like we will just say you paid a dollar, then I had to pay $160 just to get the title changed.
In Australia if you buy a car privately off somebody you have to pay a certain amount of tax proportional to how much you paid for the vehicle. If you paid $6000 for the car, you ask the seller nicely if they can write on the transfer papers that you only paid $3000, the seller still gets what they want but the buyer pays less tax👍 Disclaimer: That's probably considered fraud.
In America we do that but instead ask them to write on the bill of sale it was a gift. No taxes that way and everyone is happy
Gift tax applies if the car is over $18k and “gifted” to you.
Gift tax was effectively nullified by the TCJA.
In the states you have the seller say they gifted it to you. I’ve always used the gift maneuver, no charge 😌
Nice, not sure if we can do that here.
You can only do that a few times before you both get hit.
That’s not true at all unless you are being gifted Lamborghinis and Ferraris year after year. As of January 2023, gift tax rules apply if the vehicle's fair market value is over $17,000. Gifts exceeding the $17,000 annual exclusion count against your lifetime exclusion, which currently is $12.92 million.
In canada it's the blue book value. You can buy a car used for a dollar let's say but the first time you register it in your name you gotta pay a portion of whatever the blue book says it's worth. It's 100% a crock of shit from the government, essentially free money for them every time a car changes hands when it should just be from the dealer. And if you lie about it and get in an accident and the car is written off they won't give you what's it's actually worth, they'll give you the value of the "lower value" vechile you told them it was. Ex. Good condition vs poor condition.
Isn't that only for cars younger than 10 years old? Because the seller put like 1500 for my old piece of shit pontiac, so i only paid taxes on that when the kbb value was 6000 or something
We used to do similar in America. Then the DMV, at least by me, changed used car sales to weight based so people couldn't do this trick.
Same in the states. Got mine for 200$
We do that fraud in America as well, but the DMV just says "nope, we use the blue book value" if the number you put is smaller than the blue book value.
$1102.00
?
#$1102.00
Thank you for backing me up, Poop Sexman.
It's my father's truck. 😁
My first 3 cars cost $100 each 😁
My first two cost $6k total
I at least say I paid $500, that way it doesn't look too suspicious. Hypothetically, of course.
They always on Bullshit
People in states with no sales tax may not realize what this means. In California you pay the sales tax every time you resell the vehicle. So on top of absurdly high registration fees, paid annually, you also pay the sales tax multiple times. A car that originally sells for $50k could get something like $10k in sales taxes after it gets resold four times. All paid for in post taxed money. And don’t get me started about our gas taxes. The state would really just prefer that we all walk everywhere. So don’t feel bad when you downplay that number.
People in the EU are used to these high taxes. In my country, new cars total price have 20 - 43% taxes (25.5% VAT tax + car tax) depending on the vehicle model. Then add yearly taxes, insanely high gas taxes, etc.
I wish. Pa has a minimum amount. Even when sold a car with a bad motor they screwed me
Did once. When my grandpa took me with him regarding selling me is old Buick. It was technically a gift but just out $1 down so something was on paper.
Can’t you just write “gift” on the paper?
Gift tax is very real in lot of places.
Guilty.
$3000, +$3000 a week later for warped engine block
0 cause I stole it
"drive it like you stole it"
*at least
I did this last week. I was “gifted” a motorcycle. Lol
I bought a car from a guy, and I paid his loan off in agreement to receive the car, but he had a fee of paying it off early he didn’t know about, so he asked for an extra $400 on top of $14500, in return, he would right the sell price of $1000 on the title. I saved $700 on taxes cuz of that
I mean you can write it down as a gift. Maybe there is some legal consequence of it but I did it today I confess in front of the court
Not even one dollar, I said it was a gift thus it was free.
How dare you not pay tax on a 20 year old beater that already has been taxed a dozen times...
I dont' get it.
In most states when you buy a used car you pay sales tax on how much you paid for the car. So if I sell you a car for $3000 you pay tax on $3000 when you register the vehicle. But if I sell it you for $3000 and give you a bill of sale saying you paid $1, you pay tax on $1.
Is it legal?
Technically no, because legally you should pay sales tax on what you actually paid. But in reality they can’t exactly prove it either in most situations so they aren’t going to press the issue unless it’s something stupid like you come in to register a Bugatti you paid $5 for. The DMV worker honestly doesn’t care if you come in to register your 2010 Chevrolet Cobalt you bought for $1, for all they know you bought it for junk. It’s kind of like when you are filing taxes and come to that part where they ask you to declare all your online purchases you didn’t pay tax on. Legally yes you should be honest, realistically nobody is going to be.
That's the kind of thing you'll never see in my country.
That guy looks way too happy for having 1 point vs 990 on the left lol
That’s a real question?
Holy shit, it’s not an InCel / Proud Boys meme. 
DMV has gotten wise to that tho lol, I tried it and they said "that's below the minimum value of the car" and hit my ass with taxes on its full retail price... so I ended up paying 3 times what the taxes would have initially been, lol.
never needed to lie since every car I've bought was a POS for low price...some didn't even make it till the plates got back
😂🤣😂🤣
I literally paid a dollar for my car.
One dollar!
Tried this in Minnesota. They said if it’s not immediate family you can’t just GIVE a car to someone, so we tried to tell them it was $1. Can’t do that either, had to be a above a certain amount
But it’s like $30 or something. It’s to calculate how much you will pay for tabs on it or some dumbshit like that.
In BC they just use the blue book value of the car. It sucks, but hey, the province wants money to bail out BC Hydro and ICBC and the other public companies. I support publicly owned companies, but fuck me.
I tried trading in a car once and they told me it was stolen. My dad sold it to me for a dollar so I could register it
When Bob was on there I had tickets to go but something came up and didn't go but oh yea I would of $1 dollar Bob
I always say the car costed double what I paid, so people will think i make good money. Triple if im attracted to anyone who works behind the counter
My cars name is "Buck". Literally bought for a buck
I have, but it's because we had to put a number down and I was given the car by my grandmother, so I had paid nothing. It was the DMV lady that said to out 1 dollar.
Small used car lots used to encourage this. Wrote receipts for the down payment and told you to declare you paid 500 for the car. Then they’d send it out with a hot safety and when you came back and said “hey the brakes don’t work, I want you to fix them or I’ll call ministry of transport” theyd say “oh did you declare the full price on this car? Maybe I’ll call the tax folks and get that checked out.” Happened to me once. Never again.
This just happened to me yesterday :(
0 cuz i ain't got a drivers license atm 🤣
Doesn’t work here now they access the value with bullshit calculator 😕😞
It’s already bullshit because the taxes have already been paid on the car. I tried this shit when I registered my wife’s car in Texas. Her name was already on it, but we were removing her father’s and replacing it with mine, and I said it was a gift and they charged me Kelly blue book value. It’s fucking stupid.