PiYoImuT

I bought my ITR in April from a friend who kinda traded it in to get a BMW.
so the Dealer accept the ITR as a Trade ins, but sold it to me right away..
(so that my friend don't have to pay as much tax in his new car as if he got something traded in)
now, I got a letter from the Tax Dude saying that the car was reported to be sold to me at $19K, where it's fair market value is $22500. so He wants more Tax on the remaining balance ($22500 - 19000).

anybody got a deal like me?
I mean, the car had only 7K. my friend sold it to me for that price since even the BMW dealer will only take it for that much.. so he figure it's better to sell it to me..(through the dealer so he pay less tax on his Beemer).
I know it's not a lot of money, but I just hate that Tax is like imposed on everything, even a good deal that I got. maybe later, if we take a pee, there will be tax.

Boba-Fett

I'd fight the taxation on the ITR. Take them the paper work showing you paid 19k for the car, they have to adjust it. Just because the tax man values your car for 22,500 doesnt mean you have to pay it.

Boba- who had this same discussion with his local tax man and Boba won

Che Guevara

Someone from Canada can correct me if Im wrong, but I believe it's the same deal up here. When I sold my old DSM to a friend, I gave him a great deal, but he still had to pay tax on the difference between FMV and the actual price paid. Im not too up on US tax laws, but I think thats life up here.

sackdz

LoL, the fella i bought my car from left the selling price on the title blank (he was a cop, too!). So i put $250 Needless to say, the TAX MAN did send me a letter saying your car is worth $21,000. I went to Kelley Blue Book.com which doesn't have a price for any ITR's (they may now..???) and printed out the quote for an Integra RS @ 13,600, and paid tax on that