buying used and the tax.

[frugalman]

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hi all.
i am wondering about how to lower the tax when buying a used bike?
lets say the bike is sold for 4500 cash.

how do i minimize the tax that i going to pay?

thanks

 

[SFer]

You lie to the government on the paperwork.

 

[mastahjay69]

You lie to the government on the paperwork.

But wont he go to hell?

 

[SFer]

Yes, he will.

So the question becomes wether or not you want to go to hell to save yourself $150.

 

[frugalman]

question guys. why is there tax on a resale item anyways?

 

[Fins]

Cus government = scumbag

 

[overlordjd]

everyone has to pay tax.
get the person to write the receipt in the used vehicle package for less than what you are paying them.
should you ever have a problem and want to try and get your money back from the seller you will have it documented that he only has to give you what is on the receipt.

 

[frugalman]

i didn't even think that full refund was ever possible !

 

[AF4iK]

:lmao:funny thread. Though I disagree on the hell part... it might be illegal but it can't be immoral to deny the government your hard earned cash can it?

 

[DownUnder]

Having to pay full hst on a used vehicle that already generated the govt a nice hst payout when it was first sold is just double dipping. Id understand a small fee/percent to cover transfer costs/mot employee pay etc but full hst is ridiculous.

 

[eljay]

you have to pay because dalton mcguinty is a thieving pos.

 

[GreyGhost]

you have to pay because dalton mcguinty is a thieving pos.

+1

A few years ago they upped the tax on private transfers because dealers were complaining they weren't competitive as you had to pay more tax at a dealer than on a private transfer.

 

[Xuryfluous]

I agree it is quite ridiculous the amount of tax money that the goverment brings in off of used vehicles. They get their income tax on the money PO used to buy it new, then sales tax PO paid when he bought it, then the income tax you paid on the money you used to buy it, and then full sales tax on the declared amount of the sale. When you sit down and think of how much of your money goes to the government from pay cheque tp purchase its sickening

 

[DemonPig]

The way I think about it, Dalton said that the HST will save us, consumers, so much money. Well, it hasn't, therefore I'm sure government won't mind if I save the money myself instead.
Since I'm already paying tax on things that weren't taxed previously or even tax on tax (gas), I've decided not to pay anything or close to nothing on used vehicles.
Motorcycles don't have a wholesale value listed so there's our loophole but even cars with wholesale value can get appraised at a lower figure.

 

[Paul1000RR]

Having to pay full hst on a used vehicle that already generated the govt a nice hst payout when it was first sold is just double dipping. Id understand a small fee/percent to cover transfer costs/mot employee pay etc but full hst is ridiculous.

Double dipping? Lets see the materials used to build the vehicle = tax. Employees to put car together = income tax. Company that puts the car/bike together now has to pay tax. Customer buy car/bike there is hst. Resells it to the next guy, another tax. 3rd buyer theres another tax. I think in the end the government takes more cash in than the car was originally sold for lol

 

[eljay]

this should get you too.

gdp (as measured by income) is = salaries + corporate profit + private profits + taxes - subsidies.

ontario gdp per person 46k
ontario median salary per person 71k

subsidies are government spending

so...

gdp = 46 = 71 + all profits + tax - spending...
=> -25 = profits + tax - spending

sooooo....

take your profits, add back the tax, let the government spend and you have -25k per person in the province
>>> government spending is greater than the combination of all profits and tax income.
enjoy.

Double dipping? Lets see the materials used to build the vehicle = tax. Employees to put car together = income tax. Company that puts the car/bike together now has to pay tax. Customer buy car/bike there is hst. Resells it to the next guy, another tax. 3rd buyer theres another tax. I think in the end the government takes more cash in than the car was originally sold for lol

 

[jeero]

The two bikes I've purchased so far were 300$ each on the bill of sale (see siggy). Also, the last 2 trucks I've bought were 300$ each on the bill of sale as well (old Jeep and old Nissan Hardbody). I guess I have a thing with putting 300$ as the purchase price. I really didn't mind paying 39$ tax on my new-to-me R6.

I don't feel bad. There were 4 previous owners to the bike I just got. I figured the government got their share by now.
It's just a little awkward at my local MTO because the one person I always end up at has a motorcycle and knows about them. When I told her: "I paid 300$ as-is because it needs tires", she looked at me with a "I know you're lying" kind of smirk but she doesn't give me a hard time. There's no book value on motorcycles so there's not too much she can do.
I do believe that technically she can refuse to transfer the ownership and have me go for an appraisal if she believes I skewed the bill of sale, but I've never heard of that happening to anyone I know.

 

[2WET]

Yes you can tell them you bought it for $2500 instead, and still pay a hefty $260 in taxes uvip etc. the tax used to be reasonable of 5% and now its 13%, the government get **** my *** some other way, plus like the rider above if its used the government has already milked that one bike 1/3 to half of its value depending on how many previous owners. The only thing is if you get insurance you will only get back the value of $2500 or what you paid tax on at the mto incase your bike gets stolen or accident.

if your bike is $5000 or more, then i'd say you bought it for $4000 etc, because then as the price goes higher you loose more then save in the long run incase something happens to bike, if under $5000 do as you please.

Also, recently read, Canada is the 6th richest country in the world right now, so yea buddy do what ya want! our government has enough money to make rap videos slicing 1000 dollar bills in the air.

 

[imnothng]

if your bike is $5000 or more, then i'd say you bought it for $4000 etc, because then as the price goes higher you loose more then save in the long run incase something happens to bike, if under $5000 do as you please.
.

What the heck are you talking about?

 

[caboose56]

Yes you can tell them you bought it for $2500 instead, and still pay a hefty $260 in taxes uvip etc. the tax used to be reasonable of 5% and now its 13%, the government get **** my *** some other way, plus like the rider above if its used the government has already milked that one bike 1/3 to half of its value depending on how many previous owners. The only thing is if you get insurance you will only get back the value of $2500 or what you paid tax on at the mto incase your bike gets stolen or accident.

if your bike is $5000 or more, then i'd say you bought it for $4000 etc, because then as the price goes higher you loose more then save in the long run incase something happens to bike, if under $5000 do as you please.

Also, recently read, Canada is the 6th richest country in the world right now, so yea buddy do what ya want! our government has enough money to make rap videos slicing 1000 dollar bills in the air.

Completely wrong.

Any potential insurance payout is based entirely on replacement value and has nothing to do with what you paid for it initially.

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