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When you transfer titles on a used bike and pay sales tax at DMV why would anyone put the full price they paid? If you can list it for considerably less and thereby pay a lesser sales tax? If both the seller and the buyer list the same sale price, can DMV have any say in what to charge you?

For example, if you buy a bike for $6,000 but only state you paid $1,000.

Another option is you state that you received the motorcycle as a gift. What does DMV charge for this?
 

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if u and the previous owner agree on price to write down nothing happens u just pay less. If you state it's a gift they ask u how much u think its worth and they go off that. Every1 does it haven't heard any complaints yet.
 

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doesn't gift tax suck?! lol


Here in this state they charge you what the bike is worth "blue book". I paid over $400 to tag my bike.
 

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California no longer accepts the lower than blue book amounts on bill of sale. I know the old trick, been there done that...last time it didn't work out though. I was told that due to abuse of the system the California DMV adopted a new law, new as of a few years ago, that if the amount is lower than blue book the tax will be on blue book value. If you pay more than blue book, you pay more tax too...LOL You can receive it as a gift from a family member to avoid tax, but only immediate family.
 

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Depends on where you live, whether your state's DMV tries to crack down on this sort of thing, and even down to whether or not the DMV representative is thinking you're trying to mess with the system.

In general, California DMV tends to question any indicated sales price that is substantially below market value (I think they go off the NADA book). This is more true of cars though, because data on market prices for cars is readily available, and they can look it up. Not so true for motorcycles, so it's probably easier to get away with stating a much lower sales price. (i.e., a DMV rep will probably question a sales price of $15,000 on a 2004 BMW M3, but will likely not bat an eyelash at a sales price of $2,000 on a 2003 Honda CBR600RR.)

Of course there is the moral issue of bilking your state government of the revenue it is due, but that's your dilemma... ;-)
 

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I live in Cali and I bought 2 bikes this year. I only paid sales tax on the ammount I put on the title both times and it was never even close to blue book. I think I put $3000 both times and they were both 05 RR's.

I did the same thing with my 2 jetskis. One I put $650 and another one I out $500. This was also within the last 2 years.
 

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quasi888 said:
Of course there is the moral issue of bilking your state government of the revenue it is due, but that's your dilemma... ;-)
HAHAHAHA I hope this is some sort of sick joke. As if the state doesn't rip me off enough every two weeks.
 
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Actually, not all DMV offices enforce this law in Cali. A friend of mine just recently registered his for a lot less and they charged him based on what he wrote on the pink slip. It's all about finding that loophole. Don't ask me, cuz I don't know...heehee
 

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I just got my second 600rr a couple months ago, and I came up with a question that I still haven't answered...

Whats gonna happen in a barter situation? say I have a boat, and the guy I'm trading with has a bike. I don't know how the Florida law would work on that. If I were involved in a situation like that I would have to put down $1 and say that it was a gift, in exchange for a gift.

Technically I would say the state would want the values assessed, subtract lesser value from greater value, and whoever came out on the sh!t end of the stick would have to pay the tax on that amount.

My 2c in question form, and best guess
 

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They screw me in the drive through and the DMV! Damn it. The last time I registered a used bike I bought, they charged me tax off market value. My sale price of $200 I guess looked way too suspicious...guess I can't blame them.
 

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Discussion Starter #12
The reason I ask is exactly what someone said, if I buy an 05 600rr and state I paid less than $1000 it would be way too suspicious. So I was wondering if you knew what they did in the case that they were suspicious.

Earlier this year i bought a gs500 with a salvage title and said i paid $500 and they didn't question it. Perhaps because it was the salvage title.

I'm wondering if i say this bike is a wrecked bike that I plan to fix up, but it has a clear title. Do you think that would work?
 

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All my used bikes (CA), i had a bill of sale that said i payed $50 for the bikes. I would just say it was a friend, and this is what we agreed on. It works, they dont care, as long as its not stolen, its all good. I have done this in selling (advising the buyer to do the same @ DMV) and buying mainly dirtbikes. DMV has never questioned me about it. But, it could be different when it comes to street legal machines.
 

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Whats gonna happen in a barter situation?
Should be treated just like how the IRS defines barter:

Bartering occurs when you exchange goods or services without exchanging money. An example of bartering is a plumber doing repair work for a dentist in exchange for dental services. The fair market value of goods and services exchanged must be included in the income of both parties.
which is from http://www.irs.gov/taxtopics/tc420.html.

So, to be honest, you'd have to write the value of what you bartered away on the title. To be fair, though, I doubt anyone would do it, although $1 might trigger some kind of audit. You'd be better off putting $1000 down and paying a few Jacksons in tax.
 

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marlopez said:
When you transfer titles on a used bike and pay sales tax at DMV why would anyone put the full price they paid? If you can list it for considerably less and thereby pay a lesser sales tax? If both the seller and the buyer list the same sale price, can DMV have any say in what to charge you?

For example, if you buy a bike for $6,000 but only state you paid $1,000.

Another option is you state that you received the motorcycle as a gift. What does DMV charge for this?
In TX they don't care what you paid for it although it used to be on your word. Well they got smart and found out how much money they were losing so they use NADA now.
 

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trenton said:
Should be treated just like how the IRS defines barter:



which is from http://www.irs.gov/taxtopics/tc420.html.

So, to be honest, you'd have to write the value of what you bartered away on the title. To be fair, though, I doubt anyone would do it, although $1 might trigger some kind of audit. You'd be better off putting $1000 down and paying a few Jacksons in tax.
nice research, or knowledge.. whichever that looks correct and you are right, better off with the higher amt.
 
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