Dept. of Taxation... you paid too little for your car
05-05-09, 01:42 PM
#32
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That is ridiculous and it is just a way to get more money for your state that is in dire need for money. It is even more ridiculous that you have to pay taxes on something you buy used. The taxes were already paid on the vehicle 2 or 3 times when bought new so you should not have to pay them again when selling used. I could not believe I had to pay taxes on a private car sale when I got my GS, the govt had nothing to do with that transaction yet gets a nice cut and to top it off when I was going to re-register it in another state that I was temporarily living in I was going to have to pay another $600+ in taxes based on what the car was worth just to register and get a license plate in that state after paying over $900 just a year before. I would be pissed if the govt decided I got too good a deal on the private transaction and made me pay more to them, how do they know the circumstances of the sale or condition of the car? As to why lawmakers/politicians get away with all this crap and people keep voting for them it just boils down to people keep voting tax happy/fee happy/fine happy/penalty happy Democrats in and don't understand the consequences.
My friend on the east coast gets tickets all the time for parking in front of his house in the city (I got one too before) because the laws are purposely vague. He finds out after days of calling and asking questions you can't park 60 feet from the corner which means the owners of 3 to 4 homes up including his can't legally park in front of their homes without getting tickets which is ridiculous. He then asks if they can at least mark off where you can't park and put up a sign clearly explaining the law and they say they don't have the money/budget to do that. His neighbor finds out and measures the 60feet and spray paints a marker and then puts up two temporary signs saying you will get a ticket if you park here as a warning. The very next day a road crew is there painting over where he marked it and taking away the warning signs and a cop is there asking who did this. The neighbors start complaining of all the tickets they/others get because nobody knows it is illegal to park in that area and it is not marked and the cop could care less and is giving them an attitude, one neighbor says they will just sit on their porches and take turns warning people they can't park there until they put up a sign or change the ordinance and the cop said if they do that they will be fined or arrested
. So the state does not have enough money to mark off and put up a simple sign saying you can't park in that section yet suddenly has enough to immediately pay a road crew to come and paint over where someone marked off where you are not allowed to park but there is graffiti all over that they won't pay to remove
Fact is they make too much money off of the vague law and will continue to rip people off.
My friend on the east coast gets tickets all the time for parking in front of his house in the city (I got one too before) because the laws are purposely vague. He finds out after days of calling and asking questions you can't park 60 feet from the corner which means the owners of 3 to 4 homes up including his can't legally park in front of their homes without getting tickets which is ridiculous. He then asks if they can at least mark off where you can't park and put up a sign clearly explaining the law and they say they don't have the money/budget to do that. His neighbor finds out and measures the 60feet and spray paints a marker and then puts up two temporary signs saying you will get a ticket if you park here as a warning. The very next day a road crew is there painting over where he marked it and taking away the warning signs and a cop is there asking who did this. The neighbors start complaining of all the tickets they/others get because nobody knows it is illegal to park in that area and it is not marked and the cop could care less and is giving them an attitude, one neighbor says they will just sit on their porches and take turns warning people they can't park there until they put up a sign or change the ordinance and the cop said if they do that they will be fined or arrested
. So the state does not have enough money to mark off and put up a simple sign saying you can't park in that section yet suddenly has enough to immediately pay a road crew to come and paint over where someone marked off where you are not allowed to park but there is graffiti all over that they won't pay to remove Fact is they make too much money off of the vague law and will continue to rip people off.
05-05-09, 01:52 PM
#33
Lexus Fanatic
This tax law can cause so many problems mainly in people never being able to sell their cars at attractive prices or quickly if they need money because they are going to get investigated if the govt feels the price is too low and the buyer is going to get wacked with extra taxes/fines if they get a too good a deal in the govt's eyes. It can affect the whole market for used cars and cause people to lose tons of money and worse.
05-05-09, 02:29 PM
#34
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I think you might be in trouble here unless you have some pretty good documentation. Even then, don't expect them to roll on the tax due. They will require you pay it and if you get it reduced they will say they will refund it, which they probably will. But that doesn't help right now. We don't know the circumstances but if there was a reason why you were able to buy the car at considerably under something like KBB, it would have been nice to get an independent appraisal verifying the value.
I assume that NY is just like Cali right now and they are scratching for every buck they can get. I have been in business for thirty years but we have had more audits and investigations in the last six months than we have had in the previous 29 1/2 years. The states can't just print money like the Feds so they are going after anything they can and the computer is their friend. We had one issue that the state wanted about $30K from us. We showed them that they were wrong and they accepted our explanation. They still wanted the $30K and gave us the, "we'll refund it to you". We found out that that branch of Cali tax agency we were dealing with had an ombudsman. We contacted them and they quickly understood what the problem was, agreed with us (as did the agency claiming the tax), and they could issue a stop order on the processing, which they did on the spot. If you are sure you have enough backup, you might want to see if the state agency you are dealing with has such an office. I don't like to say anything nice about taxes and Cali but in this instance, they did the right thing, quickly, and without complication. But we had all the documentation to support our case. Good luck.
I assume that NY is just like Cali right now and they are scratching for every buck they can get. I have been in business for thirty years but we have had more audits and investigations in the last six months than we have had in the previous 29 1/2 years. The states can't just print money like the Feds so they are going after anything they can and the computer is their friend. We had one issue that the state wanted about $30K from us. We showed them that they were wrong and they accepted our explanation. They still wanted the $30K and gave us the, "we'll refund it to you". We found out that that branch of Cali tax agency we were dealing with had an ombudsman. We contacted them and they quickly understood what the problem was, agreed with us (as did the agency claiming the tax), and they could issue a stop order on the processing, which they did on the spot. If you are sure you have enough backup, you might want to see if the state agency you are dealing with has such an office. I don't like to say anything nice about taxes and Cali but in this instance, they did the right thing, quickly, and without complication. But we had all the documentation to support our case. Good luck.
05-05-09, 05:19 PM
#35
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), then, you two probably don't have anything to worry about. The legal burden is on the state to prove he paid more.....which, of course, they can't prove, if he didn't. But, if the state supoenas bank records, though, and finds that he wrote you a check for a lot more than $5000, that would be a different matter.
05-05-09, 05:30 PM
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If $5000 was the honest price (And I'll take your word for it that it was), then, you two probably don't have anything to worry about. The legal burden is on the state to prove he paid more.....which, of course, they can't prove, if he didn't. But, if the state supoenas bank records, though, and finds that he wrote you a check for a lot more than $5000, that would be a different matter.
), then, you two probably don't have anything to worry about. The legal burden is on the state to prove he paid more.....which, of course, they can't prove, if he didn't. But, if the state supoenas bank records, though, and finds that he wrote you a check for a lot more than $5000, that would be a different matter.
05-05-09, 05:48 PM
#37
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05-05-09, 08:26 PM
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05-05-09, 08:30 PM
#39
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Sorry, but it is guys like you that force states to charge taxes based on estimated market value vs. actual sale value. You say you paid cash and both you and the seller will attest to it, but that's just not proof. It does not matter how much you spent on the car or how bad of shape it was in. Unless you can PROVE you paid only $5K for the car (and paying cash was a bad idea here BTW), then you need to just pony up the money. I for one don't blame the state. Put yourself in their shoes. How many other people under pay their fair share of taxes?
Your parents broke the law. The Federal Tax law that is.
1. The car must be sold at an "arms length transaction" and that disqualifies anyone in your family from buying it.
2. A brand new 2002 SC430 would not be depreciated even today by the current depreciation schedule for cars (a V8 X5 would be a different story). The FACT is that the car still had lots of value on the books* and by selling it for $10 your Dad was able to write-off the rest as a loss. This is known as tax fraud.
If your Dad gets audited, he is toast. Oh so is his accountant.
*If you don't believe me, go check out the depreciation schedule for cars owned by a business.
Sorry, but it is guys like you that force states to charge taxes based on estimated market value vs. actual sale value. You say you paid cash and both you and the seller will attest to it, but that's just not proof. It does not matter how much you spent on the car or how bad of shape it was in. Unless you can PROVE you paid only $5K for the car (and paying cash was a bad idea here BTW), then you need to just pony up the money. I for one don't blame the state. Put yourself in their shoes. How many other people under pay their fair share of taxes?
Same kind of thing just happened to my parents in Florida. My father has his own company and had bought a 2002 SC430 brand new back in 02 thru the business. Since the business could no longer depreciate its value on the books and it was paid off, the business sold the car to my mom as a private individual for $10.00 .
1. The car must be sold at an "arms length transaction" and that disqualifies anyone in your family from buying it.
2. A brand new 2002 SC430 would not be depreciated even today by the current depreciation schedule for cars (a V8 X5 would be a different story). The FACT is that the car still had lots of value on the books* and by selling it for $10 your Dad was able to write-off the rest as a loss. This is known as tax fraud.
If your Dad gets audited, he is toast. Oh so is his accountant.
*If you don't believe me, go check out the depreciation schedule for cars owned by a business.
05-05-09, 09:21 PM
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A. You don't know me or anything about me
B. This was your first post in these forums and it's on a tax related subject. That alone makes you suspect.
C. I've ALWAYS paid my fair share of taxes, done my time defending this great country AND support any laws that are fair and reasonable.
So... you're saying that in the eyes of NYS, if I got a bargain, I should be penalized for it?
Please... if Walmart had a sale on toilet paper and you paid $4 for what is normally $8 but your state tried to tax you on the entire $8 you would welcome it?
05-05-09, 09:57 PM
#41
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The state already got their taxes when the original owner purchased the car new.
I hate it when the state gets tax money over and over again when a transfer occurs. One vehicle could be sold 20 times and get taxed each time. The state already is making their share. Fight it!
I hate it when the state gets tax money over and over again when a transfer occurs. One vehicle could be sold 20 times and get taxed each time. The state already is making their share. Fight it!
05-05-09, 10:17 PM
#42
Lexus Test Driver
Wow......This is def messed up. What if I want to sell my car for $100, why is this illegal?????
In Brooklyn and NYC in general, things are very bad due to the budget deficit. There are 2-3 cop cars on each major block working to give tickets. I have been pulled over more times last year than I have my whole life. So far I have paid over 1k in tickets, with 2 more pending. BTW these judges FIND U GUILTY no matter what.
If u dont drive, u also get scewed by the great people at MTA.
In Brooklyn and NYC in general, things are very bad due to the budget deficit. There are 2-3 cop cars on each major block working to give tickets. I have been pulled over more times last year than I have my whole life. So far I have paid over 1k in tickets, with 2 more pending. BTW these judges FIND U GUILTY no matter what.
If u dont drive, u also get scewed by the great people at MTA.
05-06-09, 02:38 AM
#44
Wow......This is def messed up. What if I want to sell my car for $100, why is this illegal?????
In Brooklyn and NYC in general, things are very bad due to the budget deficit. There are 2-3 cop cars on each major block working to give tickets. I have been pulled over more times last year than I have my whole life. So far I have paid over 1k in tickets, with 2 more pending. BTW these judges FIND U GUILTY no matter what.
If u dont drive, u also get scewed by the great people at MTA.
In Brooklyn and NYC in general, things are very bad due to the budget deficit. There are 2-3 cop cars on each major block working to give tickets. I have been pulled over more times last year than I have my whole life. So far I have paid over 1k in tickets, with 2 more pending. BTW these judges FIND U GUILTY no matter what.
If u dont drive, u also get scewed by the great people at MTA.
As to respond back to the person about signs on the street, i AGREE 100%.. you have to be really slick to live in this city. on a avg there are about 3 to 4 signs on a poll about parking. And these cops are there on the dot. Also street cleaning, if you don't move your car for that. Not only will you be tickted, but also will get a fat neon sticker on your side glass window...
back to the topic, if the buyer and seller both sign the DMW form that stated Seller paid a certain amount and Buyer received that same certain amount. What else can you do about it?? i call it BS .. fight it.. send whatever documents you can find.. like stated on some of the post, the State already collected a large sum of the tax when the car was new.
05-06-09, 05:41 AM
#45
I think everyone should pay their fair share. If the cost of running MTA is higher than fares collected, that means they have to increase fares. I dont even understand why people are whining about that. It costs what, $2.50 for a single fare or $70 per month unlimited? The cost of owning, fueling, maintaining, and parking even the cheapest vehicle is many times that. Even if they increase the fares to $10 (what it should be IMO) thats still way cheapear than all costs associated with a car.