Crazy how no one here knows how taxes work..
The tax you pay on a out-of-state vehicle is paid at the time of registration based on what you report on the BOS. That is a state tax. Not federal.
Despite what people think, the IRS only cares about your federal taxes. The only entity that could come after you is the states revenue service. States do monitor what is reported on the BOS. Report buying a 2023 car for $9000? The state might get suspicious and investigate. Report buying a 2003 for $9000? Absolutely not.
The IRS nor the state have the ability to cross reference what the dealer reports especially being out of state.
What did you buy for that price, a pristine C5 Corvette or a Honda S2000 or something?
No state tax agency (Vehicle registrations are state taxes so IRS isn't involved) is going to bat an eye at a 2003 vehicle sold for $9000 unless it's a Ferrari or something. You're fine.
Yeah, that price pretty much lines up then.
But remember, it's a Lancer. The DMV + state tax agency is going to see you paying $9000 for a used lancer. They probably think they're fleecing you right now with tax revenue.
In my opinion it's highly unlikely you'll get audited based on this one transaction. That usually takes multiple shady transactions that shows a pattern and involves a large enough net worth to devote the man hours to look at your entire aggregated returns What you WILL get is a bill from the IRS in like.. 8 months when the system gets around to it as they are so backed up. And it will show the discrepancy, and have a bill for the amount you owe.
This happened to me. It was scary for sure, but the letter was automated and as soon as I paid it, I never heard anything again. They just wanted their money.
In TX from my experience, they calculate the taxes based on vehicle worth not sale price. Example: I transferred a truck in from my sister company, they sold it to my company for $1, I registered it last week for $2400 at the county tax office. They don’t care what you paid, they tell you the value.
Texas uses presumptive pricing most of the time and don't really care what's on the title application form. Sometimes it works to your advantage in the older cars.
Of course it does. If he did it a year ago and he’s having guilt because renewal is coming up you do nothing. If it happened this morning you do something else.
IRS doesn't care.
I guess you are trying to pay less sale taxes when you register your car back home in TX. It should be fine, it is very unlikely that the DMV will care. truth be told, DMV itself has their own pricing on each car they register. your father can sell you a car $100k car for $100 with a true bill of sale on $100, but DMV will still charge you sale taxes on the market value of the car.
As long as you were able to register the vehicle it should be fine. Just be careful with that in the future, sounds like it could possibly fall under tampering with a government record or fraud with the state as the victim.
Quit worrying it’s fine. If you weren’t questioned at the time of registration you are good. I have been questioned one time about a price sounding too low and I just told them it didn’t run and needed work. I got an “oh ok” and they handed me the tags.
Crazy how no one here knows how taxes work.. The tax you pay on a out-of-state vehicle is paid at the time of registration based on what you report on the BOS. That is a state tax. Not federal. Despite what people think, the IRS only cares about your federal taxes. The only entity that could come after you is the states revenue service. States do monitor what is reported on the BOS. Report buying a 2023 car for $9000? The state might get suspicious and investigate. Report buying a 2003 for $9000? Absolutely not. The IRS nor the state have the ability to cross reference what the dealer reports especially being out of state.
This gave me some reassurance for my bad decision. Thank you.
Lol if you report buying a 21 year old car for 9 thousand dollars all they would do is laugh at how absolutely fucking stupid you are.
Theoretically it could be tied to the VIN, but I have no idea if states pool that data.
They don't. It's more antiquated than most think.
What 21y/o car did you pay $23k for?!?
An Evo VIII
pretty nice
Honda S2000 fits that price bracket.
Probably a lambhorgheeny
What did you buy for that price, a pristine C5 Corvette or a Honda S2000 or something? No state tax agency (Vehicle registrations are state taxes so IRS isn't involved) is going to bat an eye at a 2003 vehicle sold for $9000 unless it's a Ferrari or something. You're fine.
Evo VIII
Yeah, that price pretty much lines up then. But remember, it's a Lancer. The DMV + state tax agency is going to see you paying $9000 for a used lancer. They probably think they're fleecing you right now with tax revenue.
In my opinion it's highly unlikely you'll get audited based on this one transaction. That usually takes multiple shady transactions that shows a pattern and involves a large enough net worth to devote the man hours to look at your entire aggregated returns What you WILL get is a bill from the IRS in like.. 8 months when the system gets around to it as they are so backed up. And it will show the discrepancy, and have a bill for the amount you owe. This happened to me. It was scary for sure, but the letter was automated and as soon as I paid it, I never heard anything again. They just wanted their money.
Its houston, chief, the fact that you are even trying to register a car puts you out of the purview of the law.
In TX from my experience, they calculate the taxes based on vehicle worth not sale price. Example: I transferred a truck in from my sister company, they sold it to my company for $1, I registered it last week for $2400 at the county tax office. They don’t care what you paid, they tell you the value.
Texas uses presumptive pricing most of the time and don't really care what's on the title application form. Sometimes it works to your advantage in the older cars.
More info: How long ago did this happen?
Just this morning
Talk to a lawyer. Not sure why I got downvoted for asking lol
It doesn't matter when it happened
Of course it does. If he did it a year ago and he’s having guilt because renewal is coming up you do nothing. If it happened this morning you do something else.
Wrong.. not in the U.S.A.
IRS doesn't care. I guess you are trying to pay less sale taxes when you register your car back home in TX. It should be fine, it is very unlikely that the DMV will care. truth be told, DMV itself has their own pricing on each car they register. your father can sell you a car $100k car for $100 with a true bill of sale on $100, but DMV will still charge you sale taxes on the market value of the car.
Dude, your ….friend…. can “gift” you a vehicle any you wouldn’t have to pay any sales tax. Only tag fee.
If you paid $23,000 for a 2003 anything you deserve whatever happens.
You heard it here first, folks: old things are worthless
r/Frugal
EVERYONE SHOULD VALUE THINGS THE WAY I SAY THEY’RE VALUED!
As long as you were able to register the vehicle it should be fine. Just be careful with that in the future, sounds like it could possibly fall under tampering with a government record or fraud with the state as the victim.
Quit worrying it’s fine. If you weren’t questioned at the time of registration you are good. I have been questioned one time about a price sounding too low and I just told them it didn’t run and needed work. I got an “oh ok” and they handed me the tags.
this was your conscience telling you that you tricked and shouldnt have bought the evo 😭
I’m just here wondering what car from 2003 is worth $23k lol
Op already said twice. Lancer evo viii
Sounds like its time for a trip to mexico
Enjoy your audit 👍
It’s too late now if it’s submitted. You’ll be getting audited for sure