Motorcycle Swap, tax implications? | GTAMotorcycle.com

Motorcycle Swap, tax implications?

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starlifek

Active member
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Hey guys,

Has anyone swapped a motorcycle with someone else?
I'm wondering if two individuals can go to Service Ontario and swap their motorcycles.
If it's possible, are there any tax implications?
 
starlifek said:
Hey guys,

Has anyone swapped a motorcycle with someone else?
I'm wondering if two individuals can go to Service Ontario and swap their motorcycles.
If it's possible, are there any tax implications?
Click to expand...

You can get a form to fill out from the MoT office. AFAIK, taxes omitted when swapping between family members only.
 
You paid 1c for his bike, he paid 1c for yours. To make it all legal when you swap, give each other a penny :)

That is the simplest way, you will pay the 13% tax on 1c (which is legal) and that comes out to $0.0013
 
SLIM said:
You can get a form to fill out from the MoT office. AFAIK, taxes omitted when swapping between family members only.
Click to expand...

That more applies to cars. With bikes there's no blue book value, so you can mark it for a dollar, or a cent.
 
This is pretty easily done. On a car, they have a "blue book value" on which you pay the tax on when you buy it, regardless of how much you declare that you paid for it.
Bikes are different, they dont have a "blue book value", so they rely on what you tell them you paid. You CAN say $1. They will not stop you. I'm sure this is illegal because you're technically lying, but in reality they have NO way to verify it. Make sure the previous owner is clear with you on the price that you "paid" because sometimes they will get a letter from them asking how much they sold it for. They can either respond saying "$1", or just ignore them. You pay 13cents tax. As long as both buyer and seller are on the same page you're in the clear. Disclaimer: this is probably illegal and you assume all risk in doing so. Always obey the law.
 
DOHC1 said:
Bikes are different, they dont have a "blue book value", so they rely on what you tell them you paid. You CAN say $1. They will not stop you. I'm sure this is illegal because you're technically lying, but in reality they have NO way to verify it. Make sure the previous owner is clear with you on the price that you "paid" because sometimes they will get a letter from them asking how much they sold it for.
Click to expand...

Yes it definitely falls under some form of fraud or tax evasion, pretty serious charges. If you do it make sure the seller is on the same page and there's no paper trail
 
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