How do taxes work on bike trades between two private parties?

[special_k_828]

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Hey GTAers,

Assuming no money exchange hands, how do they calculate taxes when you go to register the bike at the MTO if you've traded bikes with someone else? Anybody done this?

Cheers,
K

 

[imnothng]

For the 100000000th time.

Say you paid 1$ and pay the 0.13$.

 

[sauga_rider]

in my case with my brother and i, no tax was paid. i would assume the same for non family as well. cars are a different story.

 

[toysareforboys]

in my case with my brother and i, no tax was paid. i would assume the same for non family as well. cars are a different story.

Family is different. With bikes nobody cares to do all the "family" paperwork and just does the $1 deal. With cars that's obviously not possible, so you have to go the "gift to family" route.

O.P. Just put $1 on the invoice like imnothng suggested and pay the $.13 tax.

http://www.mto.gov.on.ca/english/dandv/vehicle/used.shtml#retail

-Jamie M.

 

[N3WMAN]

in my case with my brother and i, no tax was paid. i would assume the same for non family as well. cars are a different story.

Family vehicle tranfers work completely different. Non-family must be considered a sale.

 

[kamikaze]

When I traded my old Ninja for my SV it was a straight trade. went to the MTO and told them that we just basically exchanged keys and ownerships, and that there was no bill of sale. she did it up as $0 and that's what I paid in taxes

 

[Scuba Steve]

When I traded my old Ninja for my SV it was a straight trade. went to the MTO and told them that we just basically exchanged keys and ownerships, and that there was no bill of sale. she did it up as $0 and that's what I paid in taxes

They shouldn't do this as it is not allowed but if they do great, both parties are supposed to pay taxes on the value of the vehicle.

 

[Paul1000RR]

Hey GTAers,

Assuming no money exchange hands, how do they calculate taxes when you go to register the bike at the MTO if you've traded bikes with someone else? Anybody done this?

Cheers,
K

Technically its supposed to be whatever you paid for it. However most people put a lower price on the bill of sale and pay taxes on that amount.
However be aware that you and the seller will most likely get a letter in the future asking about the price the bike was sold for, and if you or the seller put a different amount then you are in trouble.

 

[imnothng]

However be aware that you and the seller will most likely get a letter in the future asking about the price the bike was sold for, and if you or the seller put a different amount then you are in trouble.

When/if you do get a letter, please remember to recycle it after laughing. Thanks.

 

[Paul1000RR]

When/if you do get a letter, please remember to recycle it after laughing. Thanks.

yes that is true.
however mark my words, this nonsense with people putting 1 dollar will come to an end very soon. government knows they're losing money and they will close this loophole up in no time.
in the near future you'll pay 4K for a bike but pay tax on 6K lol

 

[kamikaze]

They shouldn't do this as it is not allowed but if they do great, both parties are supposed to pay taxes on the value of the vehicle.

she didn't seem to happy about it, but she did it anyway lol

 

[special_k_828]

yes that is true.
however mark my words, this nonsense with people putting 1 dollar will come to an end very soon. government knows they're losing money and they will close this loophole up in no time.
in the near future you'll pay 4K for a bike but pay tax on 6K lol

Which is exactly why I'm asking... Paying $0 in taxes and explaining it was a straight trade is one thing, but claiming I got the bike for $1 just isn't true in any sense. I definitely don't want to give more $$ to the government...just trying to figure out what the right process is.

 

[Paul1000RR]

Which is exactly why I'm asking... Paying $0 in taxes and explaining it was a straight trade is one thing, but claiming I got the bike for $1 just isn't true in any sense. I definitely don't want to give more $$ to the government...just trying to figure out what the right process is.

How much did you pay for the bike? And will the owner go along with your tax evasion plan?

 

[fastar1]

For the 100000000th time.

Wow, OP really deserves a door prize!

 

[special_k_828]

How much did you pay for the bike? And will the owner go along with your tax evasion plan?

No I didn't get a bike or make a trade yet. This was a hypothetical question. I will be looking to move up in the spring from my zzr250 and was just trying to figure out what happens if a trade presents itself.

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