Trading my bike for another + cash...how does registry work | GTAMotorcycle.com

Trading my bike for another + cash...how does registry work

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I may be trading my bike for another bike plus cash. How does the declared value work with our good friends at service Ontario? I am thinking I would take the other bike + $5500.
 
You could put $100 , $10 or $1 and they can't challenge it for the tax. It's only cars that they look up real cost.
 
Declare whatever number you want, $100 or so. Just make sure you both remember the amount. If you receive a letter from the MTO or Canada Revenue, throw it away. If it wasn't delivered registered mail, you didn't receive it.
 
Let's say you're the kind of person that donates money to political parties, and/or have both a CRA auditor and an MTO (agent? investigator? lawyer? whatever their party crashers are called). How would you do this 100% on the level? Hypothetically
 
When you register the motorcycle, it is only the actual value of the motorcycle you will be taxed on at the time of registration.
I have done similar deals and when registering, I produce a receipt for 50% of the actual price. This seems to satisfy them.
Any money you may have received as part of the deal is not included.
Technically the cash should be claimed on your Income Tax.

Ask the seller for a $500 receipt. You will owe $70 in tax.
 
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Where there is a trade involved, I've written "this is an even trade, no money has changed hands, therefore I have written in $1 CAD to generate a taxable amount" (as null won't be accepted). This makes it doubly hard for them as they would have to prove the worth of two bikes and any cash difference...which they can't really do in the public sector. I paid my 13 cents.
 
MLadin said:
Where there is a trade involved, I've written "this is an even trade, no money has changed hands, therefore I have written in $1 CAD to generate a taxable amount" (as null won't be accepted). This makes it doubly hard for them as they would have to prove the worth of two bikes and any cash difference...which they can't really do in the public sector. I paid my 13 cents.
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Technically thats not true. What you described is called barter transaction and its completely taxable.

In this case you got away because they just don't have a book value of goods being trade. Its essentially the same with declaring whatever the price you paid for it. They dont go after you unless you're being audited for unrelated issue.
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