Can I tansfer ownership of a vehicle to my LLC woithout paying sales tax?

Question

I would like to transfer owbership of one of my vehicles into my LLC (NV). I would like to depreciate it as an asset. But if I sell it to my LLC, will I have to pay sales tax? If so, is there a way to transfer it into my LLC w/o paying slaes tax but in a way that will still show its value for tax purposes?

Answer 1

Transferring property from legal entity to another regardless of the total value, will result in a use tax liability.

Many sales/use tax laws ignore the intercompany transactions. If the item is subject to sales/use tax, then it must be paid.

Answer 2

This is a transfer from one legal entity to another. You will probably have to pay the use tax. If you try to do a $1 sale to the LLC, many states will levy use tax on the book value of the vehicle. Even states that waive the tax on legitimate gifts (TX & MO do, from personal experience) this is not considered a gift and the use tax will be collected.

However if it is used in your business you can still depreciate it without transferring title to the LLC. From a tax standpoint, a single member LLC is a passthrough entity. All business activity goes straight to Schedule C on your individual income tax returrn.

Answer 3

i kinda disagree with boston here. That is a very rare event . I believe you can give it to the corporation as part of your contribution that counts toward your capital account. It is like you invested more money. There are a ton of specific tax rules about contributions of property to a partnership (which an llc basically is) and they are pretty complicated so you should probably see someone who routinely does this. If done this way you would not have to pay sales tax.

Answer 4

You don't "sell" it to your LLC, you TRANSFER it.
Check with the Department of Motor Vehicles, they will tell you. You may have to provide yout LLC docs, but if you are a single entity LLC, it may be exempt from sales tax.

If they ask you why you want to transfer it, the correct answer is for estate planning purposes.

Answer 5

you will pay revenues taxes in Oregon. Then once you check in your automobile in Arizona tutor them your revenues settlement which you acquire in Oregon. comparable subject got here approximately to me this year, i offered a automobile in Arizona, paid AZ revenues taxes, and check in the motor vehicle in Illinois. while registering the motor vehicle in Illinois I tutor them the revenues settlement from AZ and obtain a revenues tax credit from Illinois. I paid $86 (license plates and registration) to Illinois. After examining some till now solutions, if Oregon would not have a revenues tax, then you definitely will pay the finished fare in Arizona.

Answer 6

that depends on your amount that is legal to sell without any taxes... here in my state is up to $500.00