EkS

How much is the tax when you receive over $10k for your car? Anyway to get around that? Is two cashiers checks a good work around?

Wicked_muscle

iTrader: (34)

just get two payments and don't deposit both if cash, cashier check, money orders or same as cash item in an account on the same day or the bank will automatically reports you. Don't ask your bank for advice cuz they'll report you for suspicion.

BigDaddyBry

iTrader: (15)

Why would you have to pay tax on the sale of your car?

tomsws6

iTrader: (2)

never heard of paying tax on sale of your own personal car? if you are a buisness and sell under that bnuisness name i believe you are required to report cash intake of 10k or more but we would always set up payment on paper so it was legitish. hehe the buyer will have to pay state tax when they try to register the vehicle.

EkS

What if I cash the cashiers check where the check is being drawn from and then deposit the other in my account on the same day, will that work or should I do it on different days? Oh, and I would NEVER ask the bank this question.

I believe it's income tax. But I believe it only gets reported to the IRS when you deposit $10k or more into your account.

Wicked_muscle

iTrader: (34)

Income tax is correct. Buyer pays seller pays if over $10,000. Deposit the check one day and the cash another. Cashier checks are considered as cash. That's how it was when I worked at a bank.

BigDaddyBry

iTrader: (15)

If you own the vehicle outright, wouldn't the fact you've already paid tax on it count?

It just doesn't sound right b/c if I owned a store and sold an item out of that store, would I pay tax? No, I would collect tax (which the DMV would be doing to the buyer in your instance).

Oh well, I'm not an accountant, so I just don't know these things.

EkS

So just cash one check at the bank that it's written from and deposit the other into my account, right? Does it matter if they both have my name on them? Like what if they get both checks together and they say it's over $10k, or is that not even possible?

EkS

Have you bought and sold cars? You pay taxes on cars all the time. So the govn't gets taxes EVERY TIME the car gets bought/sold, no matter how old it is.

Wicked_muscle

iTrader: (34)

it's stupid as hell since that same good is getting taxed multiple times which is unconstitutional if I'm not wrong. That is why the builder does not pay tax on every piece of a product but on the final product.

cash one take the other and deposit into your account. Next day or a couple of days later just deposit the cash. Don't cash both at the same time or the bank might ask you for info to do the report. Good luck.

EkS

You mean, don't deposit the cash and the cashiers check at the same time, right? What if I do two different deposits are two different banks on the same day?

BigDaddyBry

iTrader: (15)

Yes, that's why it seems asinine that in your situation both the buyer and the seller are paying taxes.

EkS

Yeah, tell me about it. But hopefuly we won't have to

primer84z

iTrader: (7)

You dont have to pay taxes even if you deposit 20k in your account. The money has already been taxed when the guy registers it. The form you fill out when depositing over 10k is for the bank to track large deposits to make sure you arent laundering money or other illegal activities. How do I know? I just sold my truck and deposited 13k in 50's at one time.

EkS

You know you have to pay taxes on the $13k you deposited, right? You have to claim that "Income" for your 2008 taxes, and if you don't have enough deductions you'll get taxed by the IRS. Oh, and you might forget, but the IRS will eventually remember that you deposited that $13k.

TITAN

iTrader: (1)

I am pretty sure that you are incorrect....

In CA, the buyer is responsible for paying sales tax on a vehicle. Unless you are a dealer, you are not responsible for paying any sort of tax on the vehicle. Yes, the government tracks deposits of over $10,000 but as someone stated previously that is to be sure you are not laundering money or depositing income in which taxes were not paid (this situation does not apply)...

Take a look here and tell me if it states anywhere that you have to pay taxes as the seller - http://www.dmv.ca.gov/vr/vr_info.htm#BM2520

Raptor_WS6

iTrader: (23)

you only pay taxes if the money you deposit earns more than $10 in one tax year

primer84z

iTrader: (7)

actually, income tax gurus, its only taxable income if you make a profit on selling it. The buyer pays sales tax to the state, you dont owe income tax on it unless you sell it for more than you bought it. Look it up.

primer84z

iTrader: (7)

a good example of when you would owe income tax on a vehicle sale is like you bought a 1969 Camaro and sold it today for like 150k. Obviously you have made a profit and therefore have to claim it as income. Me paying 18k for a truck and selling it for 13k is a loss and is not deductible, but is also not taxable.

EkS

This is getting mixed up. I am not talking about having to pay SALES tax on the sale, I am talking about having to pay INCOME tax on the sale.

It's $40, I know that. And that's a different issue.

I have to look it up. But I think because when you bought the truck, you counted that as a deduction on your taxes. Now that you sold it, I believe it's still income. But only way the IRS knows is when the bank tells them that you just deposited $10k or more. And if they don't see that on your 2008 taxes, they start asking questions.

I'm not an accountant, so I am not sure. I'm going to talk to a friend that's in banking. But either way, I got my answer.