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blkm3
05-02-2006, 02:54 AM
This is a question when buying a car? if buying from a private person and the owners package does not say how much the car is wholsale at does it mean I pay taxes on the amount I paid for the car . (which is low ). I was told that as long as the seller and the buyer indicate the same value the car was sold at it is fine.
any help or experiance would be helpfull.
thanks

Redster
05-02-2006, 07:49 AM
Package will always say the value, you pay tax on that. If price indicated in thre bill of sale you and the seller make is for some reason higher then in the package (?!) then you'll pay tax on that amount.

You can lower the tax by having a shop do evaluation on the car. They write that it needs some pain work, cleaning etc etc. and instead of, for example, $25k they'll say car is valued at $20k. So tax will be paid of $20k at MTO even though it says $25k in the package.

dtthiaga
05-02-2006, 08:29 AM
But, sometimes, the package says the wholesale value is $0.00, and the redbook value is $0.00. In that case, you pay taxes on the selling price.

YOu could set the "selling" price at $100.00 and call it a day.

Does the Ministry Package say $0.00 wholesale value?

Nascar318is
05-02-2006, 09:57 AM
Private, usually you pay the one tax at the licence bureau. Say you pay 10K for the car, then you go to the bureau and tell them you paid 6K with the previous owner agreeing. Then they look it up in the black book and if it's worth 7K then you pay on the 7K and not the 10K. My buddy bought a car for $8K once told them he paid 4K and they looked at it in the black book and it wasn't listed so she said that she'll mark it down as $100. So he paid tax on the $100 for a total of $7.5 LOL

blkm3
05-02-2006, 10:01 AM
ok here is the scoup so far.
the owners packages does not have a value so it is assumed at 0.00$.
I asked a buddy of mine and he said he had the samething. But he set the value at 1\3 of the real value. They both got a letter from the ministry of finance asking why the selling price ?
can anyone else confirm if this happen to them or if they can track down a price etc????

blkm3
05-02-2006, 10:03 AM
nascar318is was your friend on ONT or MTL . as i noticed you are in ottawa there is a diff.

Nascar318is
05-02-2006, 10:06 AM
Yeah Quebec side....stupid government again. Geuss everything is different between Quebec and Ontario when it comes to cars...

Just like us, if we buy a car from Ontario we have to pass a safety to put plates on it...

blkm3
05-02-2006, 10:18 AM
yup exactly what I thought . Not the same here !!

dtthiaga
05-02-2006, 12:39 PM
If the wholesale value is $0.00, then make a receipt out for 1/4 or 1/3 of the price. Cash deal, and you'll be fine.

How much are you buying the car for?

Justin e36
05-02-2006, 03:50 PM
This is a question when buying a car? if buying from a private person and the owners package does not say how much the car is wholsale at does it mean I pay taxes on the amount I paid for the car . (which is low ). I was told that as long as the seller and the buyer indicate the same value the car was sold at it is fine.
any help or experiance would be helpfull.
thanks

That is correct. If you are taxed on the amount you paid for the vehicle, and the price seems too low then you will recieve a letter from the Minstry of Finance, Retail Sales Tax Branch.

Included on the letter, it will say something ot the effect of:


Since transactions involving retail sales tax are subject to investigation, please provide the following:

1. Confirm Purchase Price $______
and provide copy of the bill of sale, if available.

2. If you took over payments, traded anything, etc. please provide details in the space below.

3. If there is any other information applicable to this transfer, please detail below.



If your story still doesn't add up, they will call you and possibly the seller as well to further the investigation.

How do I know? Because I'm currently going through this with the motorcycle I purchased back in January.

Justin

thinair
05-02-2006, 08:58 PM
When I bought my e28, it had a low wholesale value and I said it was given to me. I paid $0.00 in tax. That said it has to be reasonable, you can't say someone gave you a $60,000 2005 M3 and expect not to pay any tax.

NateoriouS
05-02-2006, 09:41 PM
so.. would anyone know the black book of a 88 325i e30..??

would it be believable to say i bought it for $1,000-$1,500

WhadUpp
05-02-2006, 10:00 PM
I have just been through this myself. My brother gave me his car so I thought since he's family then no tax.

Well guess what, I dished out at the ministry since I had to pay tax on the wholesale value because they don't consider a brother or sister family as far as they are concerned.

What they told me that it can be a tax free gift only when a mother/father/spouse/father-inlaw/mother-inlaw.

Total BS rule the govt has, no breaks

NateoriouS
05-02-2006, 10:06 PM
^^^^ what type of car..??

thinair
05-02-2006, 10:44 PM
so.. would anyone know the black book of a 88 325i e30..??

would it be believable to say i bought it for $1,000-$1,500

If my 87 528i went for $0 two years ago, I'm sure you could pull off a free 88 e30.

Nascar318is
05-03-2006, 08:42 AM
Not sure about Ontario but Quebec stops listing after 10 years, value $0.00 if it's older then 1996. No tax.

blkm3
05-03-2006, 10:29 AM
there is no such thing as no tax . It is supposed to be what you paid for the car..

So what are the verdicts of the ppl involved in the lower tax cases.?

thinair
05-03-2006, 04:58 PM
there is no such thing as no tax . It is supposed to be what you paid for the car..

So what are the verdicts of the ppl involved in the lower tax cases.?
If you bought a car via a private sale you and the seller can pretty much agree on anything to put on the MTO reciept.

I paid $0 tax.