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Author
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Topic: quick response please,...might purchase car
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Jdub07
( O Y O )
Member # 2728
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posted
 
 
If I trade my car toward a car that is of greater value and then I add $2000 to it would the purchase price be $2000? So then I'd only be taxed $2000? Wouldn't that make sence?
Posts: 7282 | Registered: Apr 2003
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BCINGUU
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Member # 2397
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posted
You can choose to tell the state anything you want about the purchase price. They will probably never know whether it's true or not, it really goes on the honor system.
However, if they audit you the expectation is that you would have put the blue book (or fair market) value of the car you are getting PLUS the $2k.
The sales price (or fair market value) of the car you traded is irrelevant.
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93 Cobra #4563 347ci 12.0@118 505rwhp 524tq
90 GT "Saleen Cobra" style convertible 347ci
67 GT "Eleanor" style coupe 347ci
Posts: 1425 | From: San Jose, CA | Registered: Jan 2003
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Jdub07
( O Y O )
Member # 2728
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posted
quote:
Originally posted by BCINGUU:
You can choose to tell the state anything you want about the purchase price. They will probably never know whether it's true or not, it really goes on the honor system.
However, if they audit you the expectation is that you would have put the blue book (or fair market) value of the car you are getting PLUS the $2k.
The sales price (or fair market value) of the car you traded is irrelevant.
I don't understand....can you explain it like I'm Corkie?
This also would be though a dealership so everything would be on paper no lieing about true value of the car...I'm just wondering if I have to pay taxes on the true value of the car or just the $2000 I put on top of my car. I've already paid taxes on mine when I bought it so if I have to pay taxes on the 'true value' of the other car wouldn't that mean I'm paying twice? Once for when I bought my car and second when I get this one? Wouldn't it make sence that I only pay tax on the $2000?
Posts: 7282 | Registered: Apr 2003
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HaulinAss Motorsports
Its a STREETRaceCar!
Member # 541
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posted
You will pay taxes for the total sale.If the price of the car was 5k then you will pay tax on 5k.Your trade in car will just show as payment towards the total purchse price.
Posts: 22472 | From: Sacramento | Registered: Nov 2001
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BCINGUU
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Member # 2397
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posted
quote:
Originally posted by Jdub07:
Wouldn't it make sence that I only pay tax on the $2000?
Yup. That makes sense to you and me, who are buyers. But not to the government, because they want to get every penny they can. Sucks to be us.
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93 Cobra #4563 347ci 12.0@118 505rwhp 524tq
90 GT "Saleen Cobra" style convertible 347ci
67 GT "Eleanor" style coupe 347ci
Posts: 1425 | From: San Jose, CA | Registered: Jan 2003
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Jdub07
( O Y O )
Member # 2728
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posted
fuck it then...not worth it. so what if my car was worth more than the dealerships car and they paid me money on top of their car? Would that mean they are buying my car and they would have to pay tax's? System is so fucked up...pickin on the little guys. ![[Mad]](mad.gif)
Posts: 7282 | Registered: Apr 2003
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