Can you still purchase a vehicle from someone for $1?

L

Leb3r

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Hi Everyone,

First time on these forums but I've lurked for quite awhile. Everyone seems well educated about bikes and the processes so I figured I've give a shot at asking a question!

I'm looking at purchasing my first bike and my friend has graciously offered to sell me his bike (if I believe its a good fit for me). Since he's a close friend we figured he could sell it to me at a reduced price to avoid paying hefty taxes. I think we can all agree that having to pay taxes on the same used bikes over and over again as it trades hands is a bit ridiculous, however I digress. That being said, I read something about black and red book and UVIP values. I couldn't find really anything specific on this though. I saw one mention of getting an appraisal from a mechanic to lower the price.

My question would be:
How can I purchase the bike off him at the lowest price in order to save on taxes?

Thanks in advanced!
 
You can put down whatever. Just make sure you and the seller discard any paperwork from the government. :)
 
imnothng said:
You can put down whatever. Just make sure you and the seller discard any paperwork from the government. :)
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Thanks! I figured as much. There's no changed law now stating that it has to be sold at black book value or something along those lines? I could have sworn someone mentioned this to me a couple years back.
 
Leb3r said:
Thanks! I figured as much. There's no changed law now stating that it has to be sold at black book value or something along those lines? I could have sworn someone mentioned this to me a couple years back.
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If MTO really were to do anything, they would just call both parties and ask the purchase price of the bike. As long as you give the same answer, you should be good.
 
Leb3r said:
Thanks! I figured as much. There's no changed law now stating that it has to be sold at black book value or something along those lines? I could have sworn someone mentioned this to me a couple years back.
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There is no blue book value for motorcycles, so the MTO has nothing to base taxes on, only the listed price of the sale. As mentioned, just make sure you and the seller are on the same page, and if either of you do get any paperwork from them just toss it
 
PLau said:
If MTO really were to do anything, they would just call both parties and ask the purchase price of the bike. As long as you give the same answer, you should be good.
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motorsiklet said:
keep the bill of sale , they might ask for a copy, it happened to me , you just mail the copy of bill of sale .
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after the original transaction and paying tax at the ministry you do not have to answer any letters or phone calls. this is a fishing expedition on their part trying to get money from people who are too naive and not aware of the laws.

toss any letter asking about the price straight to the garbage can, and tell the seller to do the same.

as for the price be realistc. 1 dollar is ridiculous.
 
Paul1000RR said:
after the original transaction and paying tax at the ministry you do not have to answer any letters or phone calls. this is a fishing expedition on their part trying to get money from people who are too naive and not aware of the laws.

toss any letter asking about the price straight to the garbage can, and tell the seller to do the same.

as for the price be realistc. 1 dollar is ridiculous.
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I wouldn't say ridiculous at all. Is it illegal to give a vehicle as a gift?
 
The MOT does not send the letters by registered mail, they ALWAYS Get lost!
Gerry
 
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Paul1000RR said:
im pretty sure that you can only give a vehicle as a gift to immediate family members...otherwise the tax man wants their $$$.
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Of course, which is why you must always declare a purchase price. Well, if they must know, I maybe bought my buddy a coffee (value: $2) for motorcycle 'x'. You might well be being truthful.

That said, if you're already spending multiple hundreds buying bike, you might as well declare it as $200 or something and just pay the $26 to avoid the odd looks. This of course assumes it's an older bike.

Bottom line is that you *can*, but you might have an easier time making things reasonable.
 
Nothing ridiculous about 1 dollar. Who says you can't purchase a used vehicle for that much? That is between you and the seller and since government doesn't list the value of motorcycles I don't see the issue. Hand over your money if you please though. Personally I feel I pay enough taxes, I don't need to support some useless gov't schmuck's steak dinner.
 
DemonPig said:
Nothing ridiculous about 1 dollar. Who says you can't purchase a used vehicle for that much? That is between you and the seller and since government doesn't list the value of motorcycles I don't see the issue. Hand over your money if you please though. Personally I feel I pay enough taxes, I don't need to support some useless gov't schmuck's steak dinner.
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Some good points are made here. Who's to say you can't help a friend out and his payment to you be a motorcycle? Am I right?? :)
 
Leb3r said:
Some good points are made here. Who's to say you can't help a friend out and his payment to you be a motorcycle? Am I right?? :)
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The government's official word on this would be something along the lines of "declare a monetary value for the trade that took place". Of course you could turn around and say there was no trade, simple 2 friends performing kind gestures that had nothing to do with each other.
 
DemonPig said:
Nothing ridiculous about 1 dollar. Who says you can't purchase a used vehicle for that much? That is between you and the seller and since government doesn't list the value of motorcycles I don't see the issue. Hand over your money if you please though. Personally I feel I pay enough taxes, I don't need to support some useless gov't schmuck's steak dinner.
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Wake up folks. These lowball sales are exactly why the government uses the book value on cars. They knew people weren't buying two year old Cadillacs for a grand so they changed the system. Sooner or later they will go after the bikes and even if you negotiate a better price on a run down beater you will get hit with heavy taxes.

Blatent lies are also insults. Why not give them the middle finger salute at the same time. Sooner or later someone is going to get ticked off and change the system. If you're going to perjure yourself at least try to make it believable. Say you traded for some stereo equipment or tools.

It's funny how the people that complain about politicians being liars are the first to lie when they could save a few dollars.
 
nobbie48 said:
Wake up folks. These lowball sales are exactly why the government uses the book value on cars. They knew people weren't buying two year old Cadillacs for a grand so they changed the system. Sooner or later they will go after the bikes and even if you negotiate a better price on a run down beater you will get hit with heavy taxes.

Blatent lies are also insults. Why not give them the middle finger salute at the same time. Sooner or later someone is going to get ticked off and change the system. If you're going to perjure yourself at least try to make it believable. Say you traded for some stereo equipment or tools.

It's funny how the people that complain about politicians being liars are the first to lie when they could save a few dollars.
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I would love to give the government the finger, where can I find the premier right now? I'm not going to give some lowly worker the finger though. Even though when I bought my last truck the girl felt sorry for me when she realized how much I had to pay. She even said she wishes I could do it like a motorcycle transfer.

If they change the system so be it, but while I can "get away" from their double dipping I will.

You be a good little citizen and follow EVERY ridiculous rule out there though.
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