"hangus77" (hangus77)
10/09/2014 at 17:10 • Filed to: None
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"hangus77" (hangus77)
10/09/2014 at 17:10 • Filed to: None | 0
| 9 |
This may get long-winded, but I'll keep it short as possible:
I have a car that is coming off of lease that I decided to purchase. I have a loan and all the documents have been signed and sent off to the car company headquarters. They have received the check and are sending me over the appropriate paperwork to get the title transferred, etc. I know I probably did this wrong, but my plan is to sell the car in the next couple weeks. (I should have just kept the car on lease until I had a buyer.) Anyway, I realized that I would have to pay sales tax on the residual value of the car because my state doesn't allow leasing car companies to collect the tax up front. Basically, I will have to pay the tax to get the car into my ownership, then the person that buys the car in two-ish weeks will have to pay the sales tax too!
The question is, can I just sell the car to a buyer and have the title signed over to that person without having to pay that tax?
TheCraigy
> hangus77
10/09/2014 at 17:14 |
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You probably could, but you might be committing tax fraud. You should consult an attorney in your state.
crowmolly
> hangus77
10/09/2014 at 17:15 |
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If the title is not in your name you do not own it.
You *might* be able to park the car and not title it and re-sell it to the buyer therefore bypassing your tax responsibility but I am pretty sure that is frowned upon and might be illegal.
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hangus77
> crowmolly
10/09/2014 at 17:21 |
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Funny thing is, I called the DMV and asked them this question and they said that it was ok and I wouldn't have to pay the tax. I think that I explained it clearly and the person on the other end didn't seem like an idiot, so I guess I am just going to go with that... lol
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crowmolly
> hangus77
10/09/2014 at 17:24 |
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Did you get a name? Probably would help JUST in case things go south. Seems a lot to me like a form of tax evasion.
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hangus77
> crowmolly
10/09/2014 at 17:29 |
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No, I didn't. But she said, "If you have no intention of having the title in your name, you are fine." I would assume that is correct.
N51fanatic
> hangus77
10/09/2014 at 17:42 |
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Floating the title is illegal. Not saying you will be busted by the feds and put I prison, but it is illegal
Biggus Dickus (RevsBro)
> hangus77
10/09/2014 at 17:55 |
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CPA here. This is by no means an official opinion. Tax isn't my specialty and I'm not up to snuff on title laws but that sounds like Tax fraud/evasion. I'd be careful.
jariten1781
> hangus77
10/09/2014 at 18:06 |
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That's straight up illegal in VA, your state may be different. You'd fall foul of assignment of title fraud. Class 3 misdemeanor. No jail time is assignable but it's a 500 dollar fine plus back paying of the taxes and penalties.
Likelihood of getting caught/prosecuted is fairly low, but having to check that you'd been convicted for the next ten years on job applications is probably not worth it to potentially save a couple hundred bucks.
Jake, Yes, wearing khakis
> hangus77
10/09/2014 at 18:51 |
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I've never done this with a lease car but some cars I've flipped without ever transferring the title to me. Just sold them that quick