bahne

Hello,
First post here, hope this is the correct location.

I recently purchased my first s2000.
I paid $15,000 for it with a hardtop.

The only concern I have is that I would like to put a price of $11,500 on the title (for registration/tax costs), because essentially I paid 11.5 for the car and the remaining 3.5 was for the hardtop.

However, I recall that the seller put the full amount of 15k on the release of liability form that comes from the bottom of the title.

Is there anybody on here that is experienced in this field and can advise me towarsd what I should do? Will the government, or whomever the reviewing party is, notice this discrepency between title and release of liability reported sale price?

Obviously, i'd really like to avoid paying tax on the additional $3.5k, but I don't want to risk getting in trouble over ~300$ in taxes. If it makes a difference, I am in California.

Thank you !

W00D

Technically you paid 15k for the car, you pay tax on all of it.

takeshi

Pay your taxes and don't ask others to assist you with tax evasion.

bahne

I don't understand how this is tax evasion.

If you buy a hardtop on craigslist, do you report it to the dmv so they can tax you on it?

SheDrivesIt

Please.

sam_spider

If the seller put $15k on the title you're going to have to pay tax on the $15k.

jkelley

Because technically you're still making a purchase and therefor should pay some sort of bullcrap tax on it.

However, I think in this circumstance purchasing a vehicle they no longer go by your purchase price from the bill of sale unless it is a new vehicle or purchased from a dealer (as of a few years ago I believe). They will tax you based on the "market value" for the car with the "standard mileage for the year" @ 15k per year or something. At least that's how it's worked in GA, SC, and NC the past few years that I've bought used vehicles (all from private sellers).

When I bought my GPW ~2 years ago, I paid taxes on the market value. When I registered it in NC last year when I moved, it was the same.

NNY S2k

https://www.youtube.com/watch?v=YtksJEj2Keg

cosmomiller

I live in California too and I have felt the pain of the tax bite on automobiles too. The DMV will ask you to confirm the price listed on the title to ensure it matches the application you will fill out and sign. They are fully aware ( I have discussed it with them) that many people discount the purchase price of cars. All they usually do is give a strong look when someone says they got a S600 for $350. You are going to have to go with the price listed on the title. Be honest. You will sleep better at night.

The good news, perhaps in all of this, is it may be possible to offset your taxes paid on purchases against your tax bill. It depends on your situation of course. Save all the receipts for purchases, especially big ticket items and itemize them when you do this years taxes. It is possible, if you have a lot compared to your income, to make a dent in your income tax liability. Good luck.

thait

you should have stated that in the previous price on the bill before the seller wrote it. It is too late now and technically in simple terms he has all the right to write 15k on the bill of sale because that is how much he sold it for.

If there was no restriction on this, all the dealers special add on (a-spec package, bmw performance package, leather package, aero kit, etc...) for new car would just be car based price if you think of it in your terms.