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View Full Version : A worthless and free car, do i pay taxes??


thinair
03-16-2005, 09:44 PM
I might buy a car, it has a book value of $0 according to the MTO (I got the used vehicle information package), and lets say it was free, would I need to pay taxes on it when transferring ownership??

From what I know, you pay taxes on the wholesale value or the purchase price, whatever is higher. So if both are $0, will this be tax free???

RevShoT
03-16-2005, 09:47 PM
i just got up to take a piss and damn..

do u really want a vehicle that has a value of 0 bucks?

dosent that tell you something?

thinair
03-16-2005, 09:55 PM
That's besides the point, I need wheels, my truck has passed away :P

5style
03-16-2005, 10:06 PM
I might buy a car, it has a book value of $0 according to the MTO (I got the used vehicle information package), and lets say it was free, would I need to pay taxes on it when transferring ownership??

From what I know, you pay taxes on the wholesale value or the purchase price, whatever is higher. So if both are $0, will this be tax free???

No taxes Nelson. My Peugeot had the same story, so i just told them i got it as a gift, and did not have to pay anything.

T.Dot_E30
03-16-2005, 10:10 PM
Hmmm i've known of cases when the car was free but u still had to pay taxes, but in this case since there is no amount to pay taxes on I guess not.

Pass by the ministry and ask them.

5style
03-16-2005, 10:25 PM
Hmmm i've known of cases when the car was free but u still had to pay taxes, but in this case since there is no amount to pay taxes on I guess not.

Pass by the ministry and ask them.

It depends on whether the vehicle exists on the MOT database. Peugeot for example does not, so you can say you got it free or even that you paid 10 dollars. They will have to accept it , because the vehicle does not exist in the database.

thinair
03-16-2005, 10:27 PM
Well, this vehicle exists in the database, but it just says wholesale value $0, retail value $0 on the MTO UVIP I got earlier.

But thanks for your info, this car just keeps getting better....

5style
03-16-2005, 10:45 PM
Well, this vehicle exists in the database, but it just says wholesale value $0, retail value $0 on the MTO UVIP I got earlier.

But thanks for your info, this car just keeps getting better....

If it says zero, im pretty sure there is no tax, unless you report an amount you purchased it for. What is it btw? Im curious now... And I cannot believe the truck is dead! Damn, this winter must of killed it?

E36er
03-16-2005, 10:57 PM
Buy it off the guy for 10 bucks....barely any tax's off that


my dad bought a car off my Grandpa for 1 buck for some reason like that

e36chick
03-16-2005, 11:06 PM
i'm curious as to what this 0$ car might be!

thinair
03-16-2005, 11:16 PM
an e28, and i think 360,000 very hard km's killed the truck. The tranny died today, the output shaft was all screwed up and on Monday it barfed out all the tranny oil through the seal. So i just kept driving on it. I was going to trash it anyway. 263km later the tranny wouldn't engage any gear but 4th, and it kept popping out. The tires are slick, the frame is bent, 2 body mounts were rusted out, the voltage regulator doesn't regulate (charges up to 20V). It's time to swap to another beater.

jeffrie
03-16-2005, 11:16 PM
You do have to pay tax the only way out of this is if it was a gift from a family member.
In Qubec they go by milage but in Ontario I beleive they go by what dealers/inssurace Quote them. Expect at least a 100-200 bucks in tax for a beater with a receipt of $0.00.

5style
03-16-2005, 11:40 PM
an e28, and i think 360,000 very hard km's killed the truck. The tranny died today, the output shaft was all screwed up and on Monday it barfed out all the tranny oil through the seal. So i just kept driving on it. I was going to trash it anyway. 263km later the tranny wouldn't engage any gear but 4th, and it kept popping out. The tires are slick, the frame is bent, 2 body mounts were rusted out, the voltage regulator doesn't regulate (charges up to 20V). It's time to swap to another beater.

damn...poor thing... Oh well...time for a new beast! that e28 better get the thinair treatment *wiggle* (in looks i mean) :P not in abuse

thinair
03-16-2005, 11:45 PM
I'm not even going to try to restore it, if it lasts me a few months I'll have happy. I just need something to get me to school for the time being. Once it's warmer I can always just take my 328 if I have to.

BMW_7
03-16-2005, 11:47 PM
Trade it to Terry for the e30, I'm sure he'll agree!

5style
03-16-2005, 11:56 PM
Nelson, one quick spray of flat black will fix it for the time it lasts :)

WASABI
03-17-2005, 11:06 AM
why not call and ask the license office, they're usually pretty friendly. tell them you're calling for a "friend". lol

ScotcH
03-17-2005, 12:09 PM
If the book lists it at $0, you pay on the sale price. Just make it a gift, or like $50 and pay tax on that. When I bought my 88 200sx, it was $0 as well, and I paid on the sale price ($100 .... should have made it less, dammit!)

CLEAN325is
03-17-2005, 12:24 PM
^^THats correct. You pay tax based on the sale price. For example, 93 and 94 VW GL's or CL's have 0 value. PUt a low sale price down on the bill of sale and youre good.

5style
03-17-2005, 12:34 PM
^^THats correct. You pay tax based on the sale price. For example, 93 and 94 VW GL's or CL's have 0 value. PUt a low sale price down on the bill of sale and youre good.

Thats exactly what i said, except i reported on the bill that the car was given to me for free, so i did not pay a dime (except $25 for new plates and $80 for sticker)

paul christians
03-18-2005, 04:37 AM
mto's say 0$ you pay 0$ in taxes.........

Alezone
03-18-2005, 10:35 AM
^^^ exactly.

Krazykanuk
03-18-2005, 10:41 AM
worse comes to worse, say that you bought the car for $1, cuz the taxes on $1 wont be worth them trying to get you to pay.

thinair
03-18-2005, 12:10 PM
I'll let you guys know what happens soon for sure. I'm getting a 10 day permit today or tomorrow, then I should be able to get it plated by next week.

thinair
03-21-2005, 02:45 PM
I went to the MTO, they told me even if the car is free, and the value is $0, I still have to pay taxes on $1, so like $0.08. Oh no *wiggle*

jmalixi
03-21-2005, 03:45 PM
I went to the MTO, they told me even if the car is free, and the value is $0, I still have to pay taxes on $1, so like $0.08. Oh no *wiggle*

That's definitely a deal breaker :D

thinair
03-26-2005, 12:47 PM
Well, I'm going to correct myself. I went to finally transfer the ownership today and get plates etc...(my 10-day permit expires tomorrow). I paid $0 tax. I don't know why the other lady at the Barrie MTO told me it would be tax on a dollar, ah well. I'd only be a few cents anyway.

Axxe
03-27-2005, 09:03 PM
Haha. Nice beater. Don't beat on it too much :D

Nascar318is
03-27-2005, 09:55 PM
You do have to pay tax the only way out of this is if it was a gift from a family member.
In Qubec they go by milage but in Ontario I beleive they go by what dealers/inssurace Quote them. Expect at least a 100-200 bucks in tax for a beater with a receipt of $0.00.

Well frank bought an 89 supra turbo for about 6 grand and it's not listed cause it's over 10 years old and the girl at the bureau said "Let's just say you payed $100 for it*wink*wink*) so he ended up paying less then $8 for the tax......it's weird how Quebec and Ontario are different when it comes to vehicles....and his second supra was the same story.....