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 | ncrunch32
Join Date: Dec 2003 Posts: 762 Kingston, NY 
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2004-05-20 86477
When you purchase any type of vehicle in a private deal make sure you don't "accidentally" understate the value of the transaction. I recently purchased a 21' bowrider in private deal. NY State matches the transaction to the used book value and highlights it if the transaction is out of whack. Net effect: one must pay tax according to reasonable used book value. Penaly for underpayment amounts to about an additional 5% over 8.5% tax which must be paid. Computer database matching is everywhere. A lesson not to be repeated. :(
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 | Art White
Join Date: Jan 2000 Posts: 6898 Waterville New York 
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2004-05-21 86496
If you have a valid receipt I would fight it. Many people do sell for less then fair market for different reasons and there is no way the government can penilize you for it. If there is a unusually big difference in the price then you might have more trouble but still I have always paid tax on the amount of the receipt. I have never had anyone at DMV question a lower then book value purchase. I don't boost about the great condition while standing in front of them while getting them registered either. ....
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| ncrunch32
Join Date: Dec 2003 Posts: 762 Kingston, NY
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2004-05-21 86520
Art, I had a receipt and they took it all in at the DMV office and issued a registration when I purchased the boat - taxed me on the amount of the receipt. 6 months later they do a computer run and find that the amount on the receipt is significantly less than fair market value. Then they send you a letter stating that they already contacted the seller, they want your cancelled checks, they will contact your insurance company if necessary to determine value, etc. Then a second letter comes stating that the seller told them the vehicle was sold for more than the receipt indicated. They offer you a choice -a) pay up with penalties included, or b) offer some explanation which they may or may not accept. ....
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 | brokenarrow
Join Date: Jan 2004 Posts: 1288 Wisconsin 
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2004-07-11 90554
I bought a truck year ago that had a damaged quarter panel. Same thing happened to me, they called the last owner, she told them she could not remember what she sold it for!!!!!!! Talk about wild!!!!! I was. She told me that she did not know why they were calling and was affraid I lied when I registered it and did not know what I told them I paid!!! They were really calling because I paid the damaged truck price and it was lower than the normal amount for that year and make. LOL I had to send them a pic and a reason for why I payed that little amount for that truck. I got the feeling they did not believe me, they called my wife while I was at work and asked if she knew what I she paid for that truck! LOL She told them a thousand less than I really paid and claimed! WHAT A MESS. They left me alone after that (maybe for fear of me coming up with proof that I paid even less! ) LOL
I dont like being called a liar (one of my pet peevs) If I do something and get busted thats a different story (Like telling the bride the truck actually cost me 1 k less than I paid!) OOPS 5 years later I sold that truck for $1100 less than I paid for it. I told my wife it was a good deal!!!! ....
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 | Chief
Join Date: Jul 2003 Posts: 4297 Southwest MiddleTennessee
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2004-07-11 90560
That is the "People's Republic of New York" for you. That is an outrage and a disgrace to freedom loving folks everywhere. I suggest you just pay cash and get a receipt signed by the seller for an agreed upon sale price. Then let the Jack Booted Thugs in the state revenue office try to prove otherwise. A so called sales tax on NOT new items sold by private individuals or nonretail sales is NOT a sales tax. It is a personal property tax and it is immoral, unlawful, and unconstitutional. Don't you just love how states just go ahead and do it anyway? But then again, New York elected "Hilary the Lustful Power Monger" and "Chuckie Boy I Want Your Guns Schummer"; so maybe this could be some kind of poetic justice or some such thing. Sorry to hear you have to tolerate such crap in your state. I know what you mean though; it is spreading to many states. ....
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 | Ducati996
Join Date: Jul 2003 Posts: 347 New York 
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2004-07-11 90575
NYS has been questioning values of cars and anything else that gets registered for many, many years...they got wise on to many valuable vehicles being declared with little value. Sorry to say Chief neither Clinton or Schummer had anything to do with it- its been in effect for sometime.
It is ironic that a tax is paid on such an item when new, and if ownership is transferred tax is paid again. Or when an estate tax is paid, but an IRA or annuity that was part of the total estate (which the tax was already paid) but they are not allowed to be kept intact as is, the law requires you to disperse in equal increments over a span of a few years or up to 20. Of course you get taxed on each increment that counts as income and you get taxed on that...
In simle terms they will not allow you to keep the inhertited IRA/annuity or any other tax shelter in tact as a whole...thats the biggest scam going, you get 4x's taxed..thats both the federal and state giving you the fist with a smile...just an example of lifes simple pleasures
Duc ....
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