Question for smart people
03-Feb-2003, 05:05 PM
#1
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Question for smart people
The car is worth $10,000 - $12,000 Civic Si 1998
To be able to transfer it to my name i have top pay 8% tax.
Now here is the Question. Do i have to pay tax if i got the car for free, even thought it's worht that much. And i am not related to the person who is giving me the car ? It's just a friend.
Help pls. Much appreciated thanks
To be able to transfer it to my name i have top pay 8% tax.
Now here is the Question. Do i have to pay tax if i got the car for free, even thought it's worht that much. And i am not related to the person who is giving me the car ? It's just a friend.
Help pls. Much appreciated thanks
03-Feb-2003, 05:06 PM
#2
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Yeah - I forget exactly how it works, but if hte value of hte car is drastically below the Blue Book value, you pay the taxes for hte value fo the car.
...I think. Oh well, guess I'm not smart
...I think. Oh well, guess I'm not smart
03-Feb-2003, 05:07 PM
#3
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![[1sL0CiviC]'s Avatar](https://www.civicforumz.com/customavatars/avatar12481_1.gif){kind=avatar}
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nope, even though it was given to you by a friend, you cant avoid paying the tax.
Only if car had been given to you by an IMMEDIATE family member, then you are exempted from paying taxes unfortunately
edit: we bought a car from someone way below the book value, but we got taxed based on the book value and not on the price we paid for the car.
Only if car had been given to you by an IMMEDIATE family member, then you are exempted from paying taxes unfortunately
edit: we bought a car from someone way below the book value, but we got taxed based on the book value and not on the price we paid for the car.
03-Feb-2003, 05:17 PM
#4
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you pay taxes based on book value ... so buying a 10 grand car for a loonie won't save on taxes (but you will save $9,999)
only 2 things are for sure in life death and Taxes, I hope for the first before the second overwelms me.
only 2 things are for sure in life death and Taxes, I hope for the first before the second overwelms me.
03-Feb-2003, 05:24 PM
#5
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So you guys saying that i have to pay tax, damn i don't think i can afford the tax... Anyways how much is the tax for this kinda car... ? just wonderiong so i can save up.
03-Feb-2003, 05:31 PM
#6
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Originally posted by gatherer
you pay taxes based on book value ... so buying a 10 grand car for a loonie won't save on taxes (but you will save $9,999)
only 2 things are for sure in life death and Taxes, I hope for the first before the second overwelms me.
you pay taxes based on book value ... so buying a 10 grand car for a loonie won't save on taxes (but you will save $9,999)
only 2 things are for sure in life death and Taxes, I hope for the first before the second overwelms me.
Don't forget the plates.....safety/cetification....emmisions......
:working:
03-Feb-2003, 05:32 PM
#7
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I JUST LOOKED UP THE BLACK BOOK FOR YOU
Retail Values
Retail High Retail Low
$11,975.00 $11,950.00
SO YOU'RE LOOKING AT ABOUT $12000
(I PUT IN 100,000KMS) SO THE $$$ COULD BE A LIL MORE OR A LIL LESS
sorry for the caps
Retail Values
Retail High Retail Low
$11,975.00 $11,950.00
SO YOU'RE LOOKING AT ABOUT $12000
(I PUT IN 100,000KMS) SO THE $$$ COULD BE A LIL MORE OR A LIL LESS
sorry for the caps
03-Feb-2003, 05:36 PM
#8
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I was talking about how much he'd save if he bought a 10 grand car for only a buck he would save 9,999 dollars because the tax would be same amount no matter what he paid for the car and the cost of plates insurance and everything else would be the same in both cases, whether he pays a buck or full price of 10 grand, savings on paying a buck would be 9,999.
03-Feb-2003, 05:38 PM
#9
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$12,000 for taxes???
i think he meant $1,200
i think he meant $1,200
03-Feb-2003, 05:40 PM
#10
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no, i meant that the value is about $12,000
taxes on that 8% is $960
hope that clears things up
taxes on that 8% is $960
hope that clears things up
03-Feb-2003, 05:42 PM
#12
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I like PULOVR calculation $800 that i was thinking, But Cosmic uhmmmm DAMN $1200 tax how did you calculate that. i can ask my friend to put it on paper for $9,000 so i don't have to pay that much. $800 tax is a fair tx for me but not $1200.
If you guys can show me how do you calculate taxes thanks.
by the way this is the car that i am getting for free
http://photos.yahoo.com/mekeni_from_toronto
If you guys can show me how do you calculate taxes thanks.
by the way this is the car that i am getting for free
http://photos.yahoo.com/mekeni_from_toronto
03-Feb-2003, 07:54 PM
#13
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how much more clearer do you want that cosmic guy to be?
black book = $12,000
tax = 8%
12, 000 * 8% = $960
no matter what your friend puts on the reciept the government will charge you on the book value
and i don't theink they care if you think its fair or not
black book = $12,000
tax = 8%
12, 000 * 8% = $960
no matter what your friend puts on the reciept the government will charge you on the book value
and i don't theink they care if you think its fair or not
03-Feb-2003, 07:56 PM
#14
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I guess we know Agent_Red is not one of the "smart people"
03-Feb-2003, 09:16 PM
#16
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you are one lucky guy gettin that car for free
03-Feb-2003, 10:55 PM
#18
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since someone felt like giving this guy a car nothing wrong with that my uncle gave a brand new Jetta to his son (my cousin) hey it's just who you know and how much they want to show you how much they care.
03-Feb-2003, 11:09 PM
#20
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so if a friend wants to give another friend a 12000 dollar car there is no law against that, some friends are like family I have a friend that works at roadsport and we grew up together, we are like brothers. now I know neither of us are rich enough to afford giving a car to the other, but sometimes people are and hell if I ever win the lottery I'm going to probably buy him a nice car (as well as myself). it's not the fact that it's a 12 grand car that counts. it's the fact that his friend is going to help him out and hand him some wheels it's the thought that counts not the gift...
