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so what I want to do,is sell them a junk car for the price I want for the house,,,then give them the house,I called my congerssman and was told there are no laws on the books for this.......that way the buyer won't have to pay high property taxes

2007-08-30 07:23:50 · 7 answers · asked by Anonymous in Business & Finance Renting & Real Estate

7 answers

Sorry won't work

Property tax is based on the APPRAISAL value of the house, which is based on the sales price of not just that house but of similar houses/properties. So while it may save SOME on the property taxes, it won't be a huge savings

Not to mention there would be Florida SALES tax and any home rule sales taxes on the sales price of the car

As well as a hefty income tax bill on the profit you made from the sale of that priceless car

2007-08-30 07:38:25 · answer #1 · answered by Craig T 6 · 0 0

The property taxes are based on the assessed value by the Property Appraiser's Office of your county. The sales price gives them a little insight, but they do their own appraisals. Don't get caught up in something that is the next buyers problem, not yours. Who cares what the taxes are, your selling! It probably won't influence an new buyer any more because any home they buy is going to have higher taxes than the previous owner, ALWAYS!

Plus, your code of ethics may be slightly unhinged, but a new buyer isn't going to want to help you with a scam, at least I would assume they are good people.

2007-08-30 15:05:17 · answer #2 · answered by Casie 4 · 0 0

I've seen some dumb ideas, but this one takes it in spades.

I doubt that you called your Congressman and were told that. They don't give out legal advice. And even if they did, given the fooked up nature of the laws that they come up with -- think Patriot Act here -- I wouldn't trust their judgment anyway.

The taxes are based upon the value of the house, not necessarily what you sell it for. Looked at at arms length the scam you are trying to pull is so obvious as to be laughable. It's not going to work.

You should also consider the fact that no lender is going to lend 6 figures for a junk car. Good luck holding out for a cash buyer.

Lastly, you'd have to pay a huge tax on the profit from the sale of the junk car. Your home's sale might be tax free if the conditions are right, but the junk car will be fully taxable as a short term capital gain. That would cost YOU many years worth of property taxes on your next home.

Smooth move, Ex-Lax!

2007-08-30 14:35:04 · answer #3 · answered by Bostonian In MO 7 · 2 0

Who in the hell came up with this idea? You can't get out of paying property taxes. If you owe back taxes they will be paid at time of closing (pro-rated) so you will be paying only your share and the new owner will pick up where you left off. You cant get out of paying excise tax (same as sales tax) either. When the deed is recorded this will be paid also. If you sell them a junk car for $100,000 they would have to pay sales tax and sales tax is a lot higher than excise tax. 2nd point if you have a mtg how are you going to go to closing without paying off your mtg? If you think you are smarter than the assessors office, I don't know what to tell you other than it will not work. The reason there is no law, because it will not work and no law is needed other than defrauding the government out of taxes and that one covers it all.

2007-08-30 15:01:56 · answer #4 · answered by Leo F 4 · 0 0

Dear Beach Bum,
Forget your congressman's advice! Property taxes are set by the purchase price alone. The county appraiser knows perfectly well what the market values in your neighborhood are and he can assess your house for the market value and make the buyer pay all the usual taxes, in spite of the purchase price. If you sell the house at below-market rates they will look into this and might cause trouble for all concerned. Not just that, but your hefty profit on the junky car has to be reported as income to the wonderful people at the IRS, who will be delighted to charge you income tax on it. Whereas, if you sell the house at the market price, you don't pay income tax. It's capital gains, and capital gains on your house are deferred until you finally sell the last house and don't buy another one. So you are just going to shoot yourself in both feet and your head if you do what you just suggested.

It sounds like your congressman is incompetent. Vote him out!

2007-08-30 14:37:26 · answer #5 · answered by AnOrdinaryGuy 5 · 0 0

You can sell them any thing you wish but when the deed is transferred to their name so is the taxes. The county will get the tax money.

2007-08-30 14:32:08 · answer #6 · answered by golferwhoworks 7 · 0 0

That's the stupidest thing I have ever heard. Don't you have to pay property taxes every year? They will have to pay it next year if so.

2007-08-30 14:31:54 · answer #7 · answered by kat70359 3 · 0 0

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