Taxes on buying a used motorcycle? | GTAMotorcycle.com

Taxes on buying a used motorcycle?

J

JessT

New member
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Hi there,

I've read the old threads on the topic but as a new rider hoping to maybe even pickup a used bike this week i wanted to get some updated info.

When buying a used bike these days, can the seller still put a lower amount so the buyer takes a smaller hit when registering or have they filled that loophole? For example putting cost of $5k bike down as $3k.

And if you are able to still do so, what amount do you tell the insurance?

Thanks and sorry for the newb questions.
 
In regards to reporting to the Ministry, you can have the seller report a lower payment and they have no real way of verifying (motorcycles only).

In regards to insurance, they will likely use market value more then your claimed value when deciding on cutting you a check.
 
Hopefully there are better ways to save a whole 260$ and it's not really a loophole that needs filling, it was always and still is considered tax evasion.
 
If I were going to underdeclare an item to minimize tax, I would be inclined to have a receipt for $200 as-is, not running, unknown problems.
 
The value of the bike is on the UVIP and that's the minimum you have to pay tax on, unless you can get a licensed mechanic to say the value is lower due to damage, etc.. But if they lie and get caught ....
 
LBV said:
The value of the bike is on the UVIP and that's the minimum you have to pay tax on, unless you can get a licensed mechanic to say the value is lower due to damage, etc.. But if they lie and get caught ....
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Since when? For cars, yes, but I haven't seen it for a bike. The last I heard, MTO had no database of bike values.
 
LBV said:
The value of the bike is on the UVIP and that's the minimum you have to pay tax on, unless you can get a licensed mechanic to say the value is lower due to damage, etc.. But if they lie and get caught ....
Click to expand...
Nope, atleast in ON, the value of the bike is not on the UVIP. Maybe in rare cases ? Cars are a different story however.

My friend just bought a 2017 model 2 months ago, and I checked his UVIP. Same story for my purchase last year and the one 2 years before that.

You can put $1 on the UVIP and still register the bike. Just have to make sure the seller and the buyer are on the same page.
Not that I condone doing this, nor have I done it. Risk is yours to take.
 
pfbmgd said:
Another joke from the goverment . You pay tax on a item that tax was already paid for .
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*insert obnoxious voice * but it's to level the playing field with used vehicles dealers

which doesn't make sense at all...
 
Really on the bikes UVIP?? No value? My apologies. Assumed the Govt had their **** together on the 2 wheeled vehicles. Guess not.
 
Ive put 1$ on every slip they handed me while doing the paper work at the MTO for every bike Ive ever purchased and registered. Just tell the seller to throw out the letter "if" they get one.
 
It's not like going through customs at a border crossing. These peeps at the DMV don't give a rat's behind what you declare as having paid for your bike. As long as the buyer and seller are on the same page then all's well. Carry on and throw out any future documents received from them ....... it's rare that one will arrive anyway but if it does, toss it! I got one years ago. Just had a chuckle as I shredded it :) Never heard another word from them. Of course, I was telling the truth about the price paid anyway. Don't we all?
 
Trials said:
Hopefully there are better ways to save a whole 260$ and it's not really a loophole that needs filling, it was always and still is considered tax evasion.
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I agree. My insurance wanted purchase cost when I insured my last bike.
Save now pay later (accident). It is hard to argue the bike is worth $5K when you reported you paid $3K.

That is not to say I agree with taxing again a bike that was taxed at purchase but thats Ontario govt for you.
 
F*ck that sh*t, cant step out my front door without someone wanting their hands in my pocket, tax evasion or not, I'll declair a dollar all day long as long as this loophole exists...……..money grabbing thieves can suck it.
 
Kedo said:
I agree. My insurance wanted purchase cost when I insured my last bike.
Save now pay later (accident). It is hard to argue the bike is worth $5K when you reported you paid $3K.

That is not to say I agree with taxing again a bike that was taxed at purchase but thats Ontario govt for you.
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What you paid and what it's worth are not necessarily correlated. Say you bought it from someone that need3d a quick sale, does that mean it's worth less when you sell it? Hell no. Your purchase price is interesting, but it has little to do with the value of your bike in a claim.
 
Yes, you can cheat the system. It currently still relies on honesty. But really, if you need to cheat on the tax, then you can't afford to ride.
 
Baggsy said:
Yes, you can cheat the system. It currently still relies on honesty. But really, if you need to cheat on the tax, then you can't afford to ride.
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Pffft, I can afford the tax on all the bikes Ive purchased despite keeping money in my pocket..……….whatev's

That's the dumbest **** Ive heard all day, and im surrounded by idiots at work...……...normally I like your posts...…..you fail this time ?
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