Hot Rods I.R.S./Bank question

The majority of posts are discussing what you can and can't do to buy and sell one of our cars. Something every one of us have to face in this hobby. Sure there is politics involved. Everything involves politics but this directly affects survival in our hobby. We have to discuss this. Only a small handful in our hobby are experts at this and many have had different experiences that we all can learn from. As has already been stated, the government could care less about whether we survive as a hobby or even financially. All they care about is how much money they can squeeze out of us for anything. To not be greedy has been mentioned about us but government is the definition of greed. They are constantly on the prowel looking for any and everything to tax or put fees on. Here is probably the only place we can get advice from others who have the same desire to survive the onslaught of others trying to take anything we have. If we can save each other from losses through a forum like this, how valuable to what we do is that?

 

In God We Trust...all others pay cash.
Best policy for large transactions over 5k is CASH..... do not get a bank involved if possible.

 

Also accepted is Gold, Silver, and Platinum @ date of sale spot price

 

When you go to register the car, the government wants to see a bill of sale and you'll need to pay sales tax on the amount. At least here in PA. And, of course, somewhere the government is monitoring this thread and just marked you down to follow.

The bottom line is that certain amounts of money are reported by the banks -how many $10K+ transactions do you think occur in the USA every day?!- and it is highly unlikely you will ever be called into question, even if you are money-laundering. Similarly, you are supposed to report capital gains on your income tax but it is unlikely you'll be caught if you don't. Of course,if you are audited, that becomes a nightmare and it's not a one time thing.

Capital gains taxes are about the lowest rate out there. You will need to decide your own level of morality
in the matter.

You can say "Cash Only" but unless you've got $10K, 20K, 100000 lying around under your mattress you still have to make a large transaction at the bank.

 

Sales tax is a state thing. They tried it on private car sales here about 30 years ago, but we rebelled and they gave up pretty quick.

Having to pay taxes on capital gains, is a good problem to have.

 

Back in the 70's I lived in Minnesota. When you bought a car there then you were charged sales tax when you transferred title into your name. I bought a rusted out Plymouth from my brother's neighbor for $100 and the guy at DMV questioned whether or not I was lying about the price to dodge sales tax. I told him the car was in the parking lot if he wanted to see it. He took one look at the rusted out hulk and was an immediate believer...LOL!!

 

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[QUOTE="Mike51Merc, post: 11849480, member: 69059]

I recently bought a car and had the seller (who insisted on cash) meet me at my bank. I drew a check for him and he cashed it at the teller. No reporting, everybody happy[/QUOTE]

This day in age with guys getting knocked in the head when carrying cash on car deals to unknown sellers . I'd say that is the wisest all around way to handle things. If the seller won't walk in the bank with you to finish the deal and get paid and have a bank office notarize the bill of sale he is probably not a seller you want to deal with anyhow.
In this state and most states sales tax is collected when you register the vehicle. Even if you paid sales tax to another state on the purchase you still pay the tax here when you register it.
On the over 10 K in cash thing. If you are flying somewhere to buy a car and carrying over 10K in cash you had better have full documentation on what you are buying for that cash. That might include a print out of the add for the car from where ever you found it an a print out of the email (s) concerning the purchase. Otherwise somewhere in your travel day you will be talking to the police or DEA as to why you had that much cash on you. Still in this day in age I'd say a guy's a damned fool to travel with a huge sum of cash rather than making bank arrangements to do the deal at a bank on the other end if you have to travel to do the deal.

 

I ran into an interesting similar issue when my aunt in NH gave me her original '65 Mustang ( do I like this aunt!) and we had a small issue in PA because she'd never paid tax on the purchase originally in 1965. It all worked out ok and they accepted low book value for the car. I try not to screw around with the DMV or tax folks as I don't want them looking too closely at everything else. They always can find something if they look hard enough.

 

I recently asked at my credit union about withdrawing $25000 cash to possibly buy a car I was going to look at out of state. They told me they did not have that much cash on hand. They would do it if I insisted but it would take a couple of days to get the cash. The teller suggested I get a cashiers check. I tried to explain the difficulty in trying to negotiate a price with a cashiers check. I asked if I could call and do a wire transfer after inspecting the car and agreeing on a price with the seller. "No" A wire transfer had to be done in person. She then suggested to see if the seller would take a check. Yea right, I thanked her for her time and left.

 

The banks don't have any money
The library don't have any books

 

I've always said, I'd like to have to pay an obscene amount of taxes........... it's a problem I could learn to live with........

 

Sellers; KEEP YOUR RECIEPTS!
Buyers; BE SMART and BE CAREFUL WITH CASH!
Sellers/Buyers; 1 SET OF PAPER, ALWAYS! If you can't trust each other walk away. $10K over 5 or 30 days (depending upon the bank) will be flagged to the gov't. NEVER BUY ANYTHING TITLED WITH CASH if you can help it.
Best free advice from decades of experience; Don't lie, cheat, accept "promises". COVER YOUR ASS.
Better to pay 15% gain tax on a profit than make no profit at all. Odds are most of you have lost a sum of $$$$$ over the period of ownership, so go back to the 1st line. That's not really a loss, simply cost of ownership/use, just like a new car. Have fun and remember COVER YOUR ASS.

 

That is actually bad advice as well and you had better declare the amount that passed through your hands. When withdrawing cash some banks require you to sign paperwork, but not always and they report any large activity that one of their account holders are involved in, whether they tell you about it or not.

 

Bologna

 

Are you sure? Maybe not the feds, but Wiki-Leaks sure is. Again, the smiley face means this is intended to be humorous. No need to wad up your undies.

 

Is there no end to the corruption ?????

 

rhetorical question?

 

5...4...3...

 

Imagine that guy ^^^^ looking over a restoration report! No thanks...

 

The cashier at the bank told me its a lot less than $10,000