44
votes
Accepted
Sales tax "trick" while buying a used car; i.e. declaring sale at lower than actual transaction value?
Yes you can get in trouble. Here is the quote from the Bill of Sale form from California:
This line is right above where you sign.
I certify (or declare) under penalty of perjury under the laws of ...
- 117k
29
votes
Sales tax "trick" while buying a used car; i.e. declaring sale at lower than actual transaction value?
Can doing this get me in trouble later ? Or will it be just the buyer
because its the buyers decision or idea ?
Definitely can, and not just the buyer since you're signing this thing as well. This ...
- 127k
17
votes
Sales tax "trick" while buying a used car; i.e. declaring sale at lower than actual transaction value?
When I lived in Ohio, when you went to register a car that you'd bought private sale, they looked up the book value, and if you were some percentage below that, you had a choice of paying tax on the ...
- 20.8k
12
votes
Sales tax "trick" while buying a used car; i.e. declaring sale at lower than actual transaction value?
You can point out the following to the buyer when talking him out of trying to cheat on his taxes:
As the buyer, the reward from the crime is so small and the penalties so high, it's simply not worth ...
- 23.7k
11
votes
Sales tax on Food
The Texas state sales and use tax rate is 6.25 percent, but local
taxing jurisdictions (cities, counties, special-purpose districts and
transit authorities) also may impose sales and use tax up to ...
- 14.1k
10
votes
In Chicago, would it be possible to get a receipt totalling $20.17?
According to Wikipedia, the Illinois state sales tax (which is one component of the Chicago rate) can be different on different types of goods (e.g., groceries vs prepared food). It is left as an ...
- 23.8k
8
votes
Accepted
Why would an error in sales tax not affect IRS tax due?
The state income/sales tax deduction is an itemized deduction, located on Schedule A. If this taxpayer didn't have enough deductions, the software would have chosen the standard deduction instead. If ...
8
votes
Taxes: buy wedding ring in Oregon, but ship to California
Most states that have a "sales" tax actually have a sales and use tax.
The sales tax covers the situation where you buy an item in state X and you use it in state X. The use tax covers the situation ...
- 117k
7
votes
Accepted
Car lease payment went up after moving to new state
What Chase told you is correct. You are paying for a big sales tax because the state of Ohio is assuming you bought the car in Ohio. Just fill out the form like they said and send it in.
The Kentucky ...
- 9,306
7
votes
Accepted
Tax on online shopping vs shopping from physical store
In the United States the sales tax regulations are done by the state (though some sates do allow cities or counties to piggy back on those taxes).
Regarding online sales, a vendor like Amazon maybe ...
- 117k
7
votes
Accepted
Am I paying taxes on my electricity unnecessarily?
As it turns out, Talgov has a convoluted way it bills taxes which it doesn't explain on its bills or website. Its website claims to bill electricity at a rate of $7.59/month + $0.10522/kWh but, with ...
- 621
7
votes
Couldn't I ship my own package for the seller to avoid sales tax?
Your understanding is incorrect. Unless you live in a state that does not have sales tax, you are obligated to pay tax on that purchase. Whether you are paying origin-based tax or destination-based ...
- 13.8k
7
votes
Accepted
Does credit card cash back count taxes?
Generally, you will get cash back for the entire amount (so $1.06 in your case).
The credit card issuer usually doesn't event know the tax amount, since it is charged as a single transaction.
- 7,998
6
votes
Is there a dollar amount that, when adding Massachusetts Sales Tax, precisely equals $200?
Don't worry about it. The State doesn't care about rounding error. All you need to do is say "We charge our prices with tax included" - you know, like carnivals and movie theaters.
Then follow ...
6
votes
Can a retailer charge me sales tax after being charged?
You didn't indicate where this took place (U.S. or elsewhere), but at the end of the day, if they're supposed to charge you tax and it was legitimately a systems issue that prevented collection at the ...
- 5,262
5
votes
Accepted
Sales Tax on Apps / Digital Goods in AppStore & GooglePlay, New York
Yes, software is considered a tangible good in NY State and if you are based in NY state, you are required to collect and remit sales tax from purchasers in NY state.
The rate you would charge would ...
- 8,643
5
votes
Accepted
Sales taxes on Groupons or LivingSocial coupons?
It depends on the State law, but in most sales tax is applied before any discount by the merchant, but after manufacturer's discount.
However, Groupon voucher in this case is not a discount, it is a ...
- 127k
5
votes
Charging sales tax for goods sold out of state?
In general you don't have to charge sales tax when you ship an item from your state to the customers state, unless you actually have a nexus in the customers state. In general it doesn't matter what ...
- 117k
5
votes
Accepted
Is VAT applied when a tradesman charges for materials?
The plumber will apply for and receive a refund of the amount of VAT he paid on the purchase amount. That's the cornerstone of how VAT works, as opposed to a sales tax. So for example:
Pipe cost £...
- 34.6k
5
votes
Accepted
Do businesses pay taxes in addition to sales taxes from customers or do they use sales taxes to pay their taxes?
The mechanism for paying income tax varies by business type, in general it's paid quarterly. Sales tax is separate regardless of business type. They collect sales tax from purchases and then send ...
- 62.9k
5
votes
Accepted
Do I have to collect sales tax when reselling used personal items?
Yard sales and the occasional Craigslist sale are considered "casual sales" so generally are not taxable.
There are, of course, exceptions, and laws vary by state.
Source: https://www.avalara.com/...
- 4,624
4
votes
Why is sales tax collected again when selling a used vehicle (or any selling any item multiple times)?
It's called a sales tax, not an object tax. The state is taxing your sale of an item. Regardless of how many times a particular object is sold, it is each sale itself that is taxed.
You are ...
- 2,520
4
votes
Accepted
Do I need to pay tax on my unregistered online 'business'?
Yes you do.
You're under the jurisdiction of at least one country where you're resident, or where you're citizen. You may be under jurisdiction of more than one country. Each country has its own laws ...
- 127k
4
votes
Sales Tax: Rounded Then Totaled or Totaled Then Rounded?
Taxes should not be calculated at the item level. Taxes should be aggregated by tax group at the summary level.
The right way everywhere is
LINE ITEMS
ITEM 1: $1.00 (taxable)
ITEM 2: $1.00 (taxable)...
- 141
4
votes
Accepted
How is tax avoidance on home purchasing avoided with Fair Tax implementation?
Your question can be generalized to address any significant changes in the tax code. The recent series of changes to the estate tax, for example, offered a year in which dying produced an unlimited ...
4
votes
Accepted
Freemium Model In-App Purchases Sales Tax
It seems to me that an in app upgrade to ad free is a prewritten change to the software license and would effectively constitute an upgrade of prewritten software. Below is what seem to be the ...
- 48.4k
4
votes
Accepted
Why charge gross receipts taxes to the customer?
the state of New Mexico provides guidance in this exact situation.
On page 4:
Gross receipts DOES NOT include:
Tax billed to the buyer (i.e., gross receipts tax, governmental gross ...
- 117k
4
votes
Accepted
Do I have to pay Sales Tax on my leased car twice when moving from VA to FL?
The problem is that the tax paid in Virginia was actually paid by the lessor and the lessor required that I pay it back to them. So I never actually paid any tax directly to the state of Virginia for ...
- 201
4
votes
Do I still pay internet taxes
Washington state, where I assume you are located, looks to be a destination-based sales tax state. From the page, emphasis added by me.
Destination-based sales tax means that if a retailer delivers ...
- 458
Only top scored, non community-wiki answers of a minimum length are eligible