Theres a store in my area, and they are giving a way a free 2007 VW New Beetle drawing. I want to know how much would I be paying in tax, title and registration fees? The cost of this car off the lot would be $18-19k maybe $20k but not sure. Also will that be all I would be paying or more...
I just want to know...not that i;m going to win one
Thanks a bunch! =)
2007-11-06 19:05:30 · 6 answers · asked by Impressive_Instant 3 in Cars & Transportation ➔ Buying & Selling
Well you shouldn't be paying anything for a free car but then again, the world doesn't always work how it should.
2007-11-06 20:15:42 · answer #1 · answered by bestonnet_00 7 · 0⤊ 1⤋
Can't give you an exact answer without knowing where you are and what your current tax situation is.
You'd pay Federal and State income tax on the value of the car. If you're in a 25% tax bracket, that would be $5,000 in Federal tax on a $20,000 car. If your state bracket is 6%, tack on another $1,200.
If you decided to register it, you'll pay your state's use tax. If that's 6% that will be another $1,200. Tag and title fees typically run another $20 - $150 depending upon the state. Of course you'd need to insure it; no telling what that might cost.
Most folks who win something like that wind up selling it to pay the taxes.
2007-11-06 20:38:44 · answer #2 · answered by Bostonian In MO 7 · 1⤊ 0⤋
Federal income tax, state income tax, state sales tax, license plate and title fee, local city and county wheel tax, inspection and emissions checks. Probably not more than 3 thousand.
2007-11-06 19:09:30 · answer #3 · answered by Eleanor Roosevelt 4 · 0⤊ 0⤋
About 10-15% for tax and license.
2007-11-06 19:10:57 · answer #4 · answered by hungrykong 3 · 0⤊ 0⤋
THE TOTAL RETAIL PRICE WILL BE ADDED TO YOU GROSS EARNING FOR THE YEAR BY THE WAY OF A 1099 FORM AND THEN YOU WILL BE TAXED ACCORDING TO YOUR TAX BRACKET.
EXAMPLE, IF YOU MAKE $45,000 A YEAR AND THE VEHICLE WORTH $20,000 YOU WOULD CLAIM $65,000 ON YOUR EARNED INCOME FOR THE NEXT YEARS TAXES.
THE RATE OF TAX WILL VARY FROM PERSON TO PERSON BUT SOMEWHERE BETWEEN 15% TO AS HIGH AS 30%.
WINNING A VEHICLE SOUNDS NICE BUT IT HAS CAUSED MANY PROBLEMS TO MANY PEOPLE IN THE PAST.
2007-11-06 22:25:22 · answer #5 · answered by Anonymous · 0⤊ 1⤋
IMPOSSIBLE TO ANSWER WITHOUT MORE INFO.
2007-11-06 19:46:17 · answer #6 · answered by 12pleze 6 · 0⤊ 0⤋