Trades... How do they work?

M

m0hawk

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So if two parties agree to terms and decide to trade a vehicle, how does the transfer of ownership work? Do we produce a bill of "sale" declaring that we indeed traded vehicles or do we create bills of sales stating we purchased the vehicles (for a super low price to save of taxes obviously). Just wondering how the whole tax thing works in that sense. I may have found someone that's willing to trade my ex500 for their ninja 250 (there IS a God!)

Cheers
 
m0hawk said:
So if two parties agree to terms and decide to trade a vehicle, how does the transfer of ownership work? Do we produce a bill of "sale" declaring that we indeed traded vehicles or do we create bills of sales stating we purchased the vehicles (for a super low price to save of taxes obviously). Just wondering how the whole tax thing works in that sense. I may have found someone that's willing to trade my ex500 for their ninja 250 (there IS a God!)

Cheers
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Just do the super low value bill of sale, it is the easiest way to do it. Mark down a dollar and register the bike :)
 
Be aware that if you value the bike low through the ministry and try to claim full value if you total it through ins it may be considered fraud.
 
ELITE28 said:
Be aware that if you value the bike low through the ministry and try to claim full value if you total it through ins it may be considered fraud.
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bullshiiiiiiiiittttttt
 
You don't think if they check what you told the ministry it was worth and it's much lower that they will try to get out of paying the full value? Think again
 
They don't have any book values for motorcycles! Tell them you paid $50 and you'll be fine
 
My plan was to tell the ministry that the bike wasn't road worthy, needed an engine etc etc... If the trade goes through I'll probably list it as $400-500 so we end up paying around $70...
 
ELITE28 said:
You don't think if they check what you told the ministry it was worth and it's much lower that they will try to get out of paying the full value? Think again
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you could just say you added a bunch of parts to it after buying it which raised the value of the bike.
 
ELITE28 said:
You don't think if they check what you told the ministry it was worth and it's much lower that they will try to get out of paying the full value? Think again
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Stop talking out of your butt. Insurance will pay out around the cost of a replacement, if you got a great deal then they're still on the hook for making sure you can get the same or close to the same.
 
Every time I see this thread title I think of magnets ;)
 
ELITE28 said:
You don't think if they check what you told the ministry it was worth and it's much lower that they will try to get out of paying the full value? Think again
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Yes, please think again.
I am willing to bet you $500 CDN cash that you are 100% wrong.
So either accept my bet or apologize for perpetuating ignorance.
 
ELITE28 said:
Be aware that if you value the bike low through the ministry and try to claim full value if you total it through ins it may be considered fraud.
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HAHAHAHAHAHAHAHAHAHA.................... That's way too funny man.
 
People miss the part where the insurance pays what they say the bike is worth, not what you paid for it. Otherwise people would be paying tax on a hugely inflated "sale" price and then claiming theft. They insure it for loss based on its value, unless you agree with them on some other (appraised) value. If they lowball you on replacement value the best tactic is to tell them to buy you a replacement, you don't want money. I agree, this thread feels magnetic.
 
skapan said:
People miss the part where the insurance pays what they say the bike is worth, not what you paid for it. Otherwise people would be paying tax on a hugely inflated "sale" price and then claiming theft. They insure it for loss based on its value, unless you agree with them on some other (appraised) value. If they lowball you on replacement value the best tactic is to tell them to buy you a replacement, you don't want money. I agree, this thread feels magnetic.
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Except what you tell the ministry and your insurance company over the phone can be two different numbers. The insurance company won't have any way of knowing how much taxes you paid when initially purchasing the vehicle...
 
m0hawk said:
The insurance company won't have any way of knowing how much taxes you paid when initially purchasing the vehicle...
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Why does the insurance company care how much tax you paid??

-Jamie M.
 
On rare occasion, the MTO will send letters to both parties asking them to confirm the selling price of the vehicle in question. If you created your own bill of sale, or modified the purchase price, they will get a high price from the seller and the low one from the buyer. If you're going to do this, contact the seller and tell them what value you told the MTO.

I don't know enough to anticipate the reprecussions of this, I would imagine a fine and the balance of tax owed would be in order.

Adam
 
toysareforboys said:
Why does the insurance company care how much tax you paid??

-Jamie M.
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They don't. They pay replacement value and don't care AT ALL about how much you paid.

To op: there is no book value on bikes. Save yourself the money and mark it down as a dollar. If they send you a letter later as long as you and the seller know $1 was marked down you are fine.

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