When buying a used car
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When buying a used car
when you buy a used car from a private owner, do you still pay sales tax?
if so, are they allowed to write up the sale as less than what you actually pay so you can save on tax? How much less can you write it down for.
if so, are they allowed to write up the sale as less than what you actually pay so you can save on tax? How much less can you write it down for.
Nope, private sales don't need to pay taxes. Unless it was a business, then they need to put taxes on the sales. So they will have to give that money over to the government.
You can bargain for lower prices, but they technically can't put a different price than what you pay on paper and pay a different price.
You can bargain for lower prices, but they technically can't put a different price than what you pay on paper and pay a different price.
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In Ontario you have to pay PST on what the purchase amount was at the private sale. You do NOT pay the seller tax. You pay taxes when you do the paperwork on the car at the MTO if I remember correctly. Its been quite a few years since I bought my last used car.
But when you buy new, you pay both GST and PST.
Im not aware of American tax laws. But I would imagine that you have to pay some kind of salestax no matter what. But what you can do is cheat. Pay the seller say 10,000 but have him write the bill of sale for 8,000 for example. Only do this if you really trust the guy and know hes not a government or city worker LOL
In Ontario you have to pay PST on what the purchase amount was at the private sale. You do NOT pay the seller tax. You pay taxes when you do the paperwork on the car at the MTO if I remember correctly. Its been quite a few years since I bought my last used car.
But when you buy new, you pay both GST and PST.
Im not aware of American tax laws. But I would imagine that you have to pay some kind of salestax no matter what. But what you can do is cheat. Pay the seller say 10,000 but have him write the bill of sale for 8,000 for example. Only do this if you really trust the guy and know hes not a government or city worker LOL
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