W
WGallahad
Guest
What is the name of your state? Virginia
I'm buying a car from a private person. He is not associated with any sort of dealership. I"m just buyign a car he had and is tired of. The car's blue book value is $19,500, and retail value is $22225.. We have agreed on a price of $18950.
I've heard that you can ask the seller to put a price of like 1000 dollars on the title when he exchanges it to you, and the result is only 1000 dollars is taxed (sales tax wise) being significantly less. I'm curious as to if there are any repercussions to this such as income tax (for the other 17950 i'm paying him)? Can't he technically give me the car, and i give him the money both as gifts?
In the case that the above is completely illegal, what about a situation like this: I read that you can give away a gift to anyone up to 11000 without incurring any tax. Can i give him the 11,000 as a gift, and then have him sell me the car for 8,000? If i did this would i have to incur any other taxes besides sales tax on 8000 for buying the car? Also does the reciever of the gift have to incur any taxes for recieving the gift? Is this even legal?
Is any of what i've stated Legal? (i haven't done it, and i wont' if it's illegal, but that's why i'm asking)
Will
I'm buying a car from a private person. He is not associated with any sort of dealership. I"m just buyign a car he had and is tired of. The car's blue book value is $19,500, and retail value is $22225.. We have agreed on a price of $18950.
I've heard that you can ask the seller to put a price of like 1000 dollars on the title when he exchanges it to you, and the result is only 1000 dollars is taxed (sales tax wise) being significantly less. I'm curious as to if there are any repercussions to this such as income tax (for the other 17950 i'm paying him)? Can't he technically give me the car, and i give him the money both as gifts?
In the case that the above is completely illegal, what about a situation like this: I read that you can give away a gift to anyone up to 11000 without incurring any tax. Can i give him the 11,000 as a gift, and then have him sell me the car for 8,000? If i did this would i have to incur any other taxes besides sales tax on 8000 for buying the car? Also does the reciever of the gift have to incur any taxes for recieving the gift? Is this even legal?
Is any of what i've stated Legal? (i haven't done it, and i wont' if it's illegal, but that's why i'm asking)
Will