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Old 05-03-2013, 09:58 AM   #1
atgunit
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Trying to purchase an X6..help with tax NY

I am going to purchase an X6 5.0 2011 for $55000 from a private seller in New Jersey. I live in Queens, NY. I really don't want to pay ~$5000 for this tax in NY. The seller agreed on writing on the tax forms that its a gift.

Will I have any problems with this at the DMV?
Some people told me I will end up paying the full amount of taxes anyway.

Any help is appreciated.
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Old 05-03-2013, 11:04 AM   #2
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I think you're better off saying the sale value was much less--maybe $35k instead of $55k. This way you're still saving something and they can't really question it. You can always say the car needs some work which reflects the sale price.

Usually when the car is a gift, they will make you pay the tax on what the DMV considers the "fair market value" of the car which may even be $50k but who knows for sure...
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Old 05-03-2013, 11:06 AM   #3
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X2 above.....ure buying a 50k car but want to skip on taxes....wtf....just tell him to write that he sold it for less.
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Old 05-03-2013, 11:26 AM   #4
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I was telling him to write it for less, but he wont go lower than $50.
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Old 05-03-2013, 11:29 AM   #5
Astheros
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To be honest u can fill outnthe form ureself at dmv and put whatever u want
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Old 05-03-2013, 11:31 AM   #6
atgunit
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I know, I just dont want to put a really low price and they question me and the seller, in which the seller will find out I wrote the price much lower than what we agreed on.
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Old 05-03-2013, 12:44 PM   #7
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He's willing to say he gave it to you for free but wont say he sold it for 35k? i dont get it. But if you just bought an X6 i know you have the money. lol you might just have to take the 5k loss and pay the taxes bruh.
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Old 05-03-2013, 01:04 PM   #8
atgunit
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Yea but this price is already over my budget lol
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Old 05-03-2013, 04:55 PM   #9
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Re: Trying to purchase an X6..help with tax NY

I know many who have done it as a gift. They havent contacted anyone. And all good to go. But IF you get caught, you will run into alot of issues

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Old 05-03-2013, 05:28 PM   #10
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Permit me to put a dose of possible outcome that is less pleasant...

You are worried about the wrong thing. The state will take whatever you tell them. They don't ask questions.

But you put yourself at SERIOUS risk ESPECIALLY from a private seller by representing the sale as something other than the price you paid,

True story,

My son sold a car for $1,000 to a kid many years ago. He clearly stated that the car had some issues, and was sold as is. The kid who buys it asks for a bill of sale AND that he write on the back of the title "Sold for $1". About 6 months go by, and the kid tells my son that the car is having transmission problems. My son reminds him that it was an "as is" sale, but the buyer decides to take him to small claims court. He presents his evidence, and the bill of sale. The judge says "You bought the car as is, and you paid $1. Judgement is for one dollar." and thats the end of the story.

A better way (and you do realize that by doing this you put yourself at significant exposure if something goes wrong - which it always does) is to define the vehicle and accessories. Declare the value of the car at $35000. Separately declare the accessories for which no tax is owed, on a separate bill of sale. It at least gives you some protection.

But buying a $55,000 car in NJ (I live there - there was this big Hurricane last year btw), and showing it as a gift removes you from any entitlement of any refund in the event that there is a problem. Is that worth $4,400 in "insurance" by avoiding those sales taxes..?

I wouldn't do, but good luck to you.

ed in NJ
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Old 05-04-2013, 12:08 AM   #11
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Thanks for the info
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Old 05-04-2013, 02:17 PM   #12
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Buy within your means, if a couple grand on taxes is going to affect your affordability then how will you be ready for an expensive breakdown or maintenance.
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Old 05-07-2013, 08:22 PM   #13
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Who buys an X6??

I just bought a used 135 vert from a guy in NJ (I live on LI), and the state put it in my tush on the tax ($2490). When the girl at the DMV desk told me how much the final bill after registration and tax was I almost lost my breath. Luckily I have a little bit of money, but I asked the girl "What do people who don't have a spare $2500 do when the taxes are this much?" And she said: "They generally don't buy such expensive cars." At which point I wanted to punch her in the tit, but I realized that she had a point. If it's already "over your budget," maybe you shouldn't buy it. Not to sound like a parent, but you should be factoring taxes, and higher insurance costs into your budget, God forbid the thing breaks down on you.
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Old 05-07-2013, 08:36 PM   #14
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pretty much all that's already been said. I just sold my 323Ci and said I sold it for less to give them a break. With that in mind, it was nowhere near 55000 but still. It's weird that he is willing to say he gifted it, but not go below 50k.
With all that's been said, are you sure you really want the car this bad and are ready for all the costs that are gonna come with it if the sales tax is pushing it?
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Old 05-08-2013, 11:41 AM   #15
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Just make sure you have a good story bro. I know everyone does it, but technically that is tax evasion. I am sure you don't need me to list out all the people that have gotten into trouble recently for avoiding tax liability. Proceed with caution.
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Old 05-08-2013, 01:46 PM   #16
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I have no idea why you would want to be posting this publicly.
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Old 05-10-2013, 07:06 AM   #17
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Your seller would technically need to file a gift tax return with the IRS, too.
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Old 05-10-2013, 08:08 AM   #18
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Trying to purchase an X6..help with tax NY

Quote:
Originally Posted by kennerd View Post
Your seller would technically need to file a gift tax return with the IRS, too.
Yes and if that's the case, the seller would be liable for the gift tax which is equivalent to the inheritance tax - I believe its 45%.


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Old 05-13-2013, 12:45 AM   #19
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Buy the Car, take the loss on Taxes $3850k ($55k X6)....do the Right thing so you won't receive any notice or letter about Tax days,weeks,months,years from now, I had a client that did what you were thinking, 15 months later he had to eat $8k of taxes from a car he listed for alot less than what its worth. DMV will OF Course know that the car you are buying will atleast have some Worth $$ .. and the value that you put which can be less than what is really worth will be seen. They have workers that do these type of cases....

If 4-5k is over budget, Imagine what maintenance will be,

I have 2011 X6 50i bought at 10kmiles, 1yr later 40k miles now so far maintenance is catching up.

O2 sensor- $1200
alternator $900
air bag and module went $3k
ball joints $600
turbos, internals and fuel rail was over 4k at the $tealer.....

just be prepared for maintenance and if you can do preventative before they break down,do it. oil change every 6k if you can, but if you dont....you will get alot of problems with these Bad B*tches as they will be more expensive than a wifey or gf....GL..
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Old 05-17-2013, 01:46 PM   #20
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My advice is to completely skip the 'gift' thing. The seller has ZERO responsibility in 'putting a lower price down'. It's all up to YOU in NY State when you register. There's a form that's called a Statement of Transaction. Only YOU the buyer are required to sign it and put the amount you paid for the vehicle on the form. Make sure it's within a reasonable market value. If you really paid 55k, you could probably get away with 40,000 to 42,500 as your stated price (You can always say it needed work; engine, tranny, body, new wheels and tires, etc.). But I'd look on Kelley Blue Book, find this vehicle, pick the 'worst' condition, and use that price as a jumping off point. The good part is that its a private sale, and a private sale vehicle's KBB value is almost always less than buying used or new from a dealer.

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