Offshoreonly.com - WTF: Government challenging tax paid!

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Quote:

Originally Posted by Tom A. (Post 2641725)

This could apply to a used boat, car, etc. For me it happened to a car I recently bought and was wondering if it happened to anybody else. I bought a 2000 BMW 540i Sport w/ 78,000 miles in April for $13,500. The guy I bought it from had it for sale for a while and was about to trade it in and I gave him the same price the dealer was offering for trade.
I just got a letter yesterday from the Government challenging me that I paid that amount. They said the NADA retail value was $20K and I owed the difference in tax!:angry-smiley-038:
Now I have to PROVE I actually paid that price!:mad:

Just wondering if anyone else has had this come up. Seems like the Government doesn't believe there is a problem with the economy and people are still paying top dollar for used items!

Sorry, just had to vent!

I live in NJ, and have to deal with this all the time. I think if the state thinks its worth 20k, they should offer to buy it from you for that amount.

We sold a mustang for 3500... they said it was worth 7500. I would love to have been able to get 7500 for it!

Quote:

Originally Posted by BAJA WILL (Post 2641910)

Don't feel bad in VA, they go of of the book value it doesn't matter what you pay!!!!!!!!

Last time I went to Virginia, everyone drove little cheap econobox cars, because the license fees were so high. They couldn't afford anything better. Sad how a government can trash your quality of life.

Michael

Guys,

The law clearly states that as consumers, we pay tax on the value of traded goods, not the purchase price. Now in most cases that is the same or close to the same, so no issue. However, with boats, cars etc, theres gray .....

The gov can tax you/us on the fair market value of anything that we buy for below that market value. Just because you purchase a boat from your "brother" for 5K and its really worth 50K, you cant hide from that 45K in tax.....Now don't get me wrong, i'm with you not against...I just know clearly how this works.....My advice...take pictures of the "item" in the poor condition that I'm sure it is in for that low price that you paid....document receipts whatever, show specific areas that are defective, reasons that it was below value. Just document why you paid below "book" price and you will be fine. For instance, I purchased a boat once very below value, but the reason was that there were "bad" engines in it that had to be thrown away. I just happened to have pictures when the gov checked that showed the boat without motors....get the point ?

Quote:

Originally Posted by jayhawk261 (Post 2642003)

In Oklahoma, if the sale price is not within "x" percent of their value, you have to pay tax on the value they deem necessary. They don't give you a chance to walk out the door without paying more tax here. :angry-smiley-038:

OK depreciate's A LOT faster. If you were to buy a 2000 model or older in OK, you would pay 0 sales tax.

Quote:

Originally Posted by Wahoo ATV (Post 2641851)

I just got a letter in the mail from CA regarding a boat I sold a guy FOUR YEARS AGO. He took delivery in international waters (Canada) and then moved it to Mexico for a period of time and then to CA. I guess he was getting "around" sales tax that way. They want proof from me of all this.

Why was CA messing with you? In CA the sales tax on a private sale is the buyers responsibility.:drink:

Quote:

Originally Posted by Panther (Post 2641932)

Legally don't you only have to pay $1 for something without it being a gift anyway......

NOT IN NJ ANYMORE THEN YOU WILL PAY TAX ON BOOK VALUE.

Quote:

Originally Posted by bojoe2 (Post 2644658)

NOT IN NJ ANYMORE THEN YOU WILL PAY TAX ON BOOK VALUE.

I got one of those tax bills on a $1 title wash. Wrote a letter stating it was a gift from my father and the $1 was to transfer the title. Never got another Bill.