2007-09-12 15:57:44 · 4 answers · asked by lisa t 1 in Business & Finance ➔ Taxes ➔ Other - Taxes
You'll pay motor vehicle excise tax on the value of the car. Sales tax would be on the price you paid for the car, which I'm assuming is $1,050? Or did you buy it for $1.05? If so, I want the name and address of the car dealership.
2007-09-12 16:25:42 · answer #1 · answered by Anonymous · 0⤊ 0⤋
In most states you'll pay the use tax at the higher of the 2, the purchase price or the book value.
2007-09-12 23:29:49 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
If you purchase a car with that price, you need to pay taxes on the price you purchase, which is 1,050 plus ano additional charge such as the title (plate). Basically, the value of the car that you buy is also 1,050 which already deducted depreciation. A car with such price is the current/market value because it is an old car and it had been depreciated (reduce it's value). So, you pay taxes on that price which is the same as you pay on the value..
2007-09-12 16:06:07 · answer #3 · answered by Vina D 1 · 0⤊ 0⤋
For years every private sale of a car included a bill of sale for some price well below the market price (FMV). Most states figured out that some of us were trying to pull a fast one on the state. In every state that I am aware of you will be paying a "use tax" on the higher of either the FMV or the stated purchase price.
2007-09-13 04:47:59 · answer #4 · answered by ? 6 · 1⤊ 0⤋