A man asked a preacher friend of mine about a novel, but perhaps unethical, idea for buying a vehicle, but not paying full taxes. Having learned if it, I thought it interesting enough to ask you all.For example, let’s say a car is for sale for $10,000. If the sales tax is 10%, that means a $1000 in sales tax. He thought to tell the seller that he would pay $3000 for the truck, but would pay the man $7000 to detail it, deliver it, fill it with gas, etc. This way, the sales tax would only be on the $3000?Is it wrong to seek to shelter money from taxes? Or would this scenario be unethical? No, I am not referring to Donald Trump. This is just something my friend had been questioned about.
Better make the transaction less than 10,000 – otherwise Feds will note it.Sell it for 10 dollars – get a 9990 detail job.Better check the state – some states charge tax on services.Or pay the 7000 for the service – then post on yelp how poor the 7000 detail job is – tell seller that you will take down bad yelp review for 1000 – get the final price at 9000.Unethical________________
Not that it makes it right, but my state is totally unethical in their vehicle tax practice.They don’t care what you paid for it, if you paid $5000 for a car and they think its worth $10,000 then they will charge you sales tax based on what they think. Actually they have a value book written by guess-who. That they use to value the car. It is 100% unethical. In their leading by example they have said by their actions that the price of the car is not what you pay taxes on, its what they think you should pay taxes on. Therefore, I guess you can have a book that says what YOU think you should pay taxes on.There is very little ethical in government these days.
Let me see here…………..ETHICS? ETHICAL QUANDERY?Would this not be kinda like the feller (quite a few COG preachers has done it) what sends in $500 (or $1K, or $2K, etc.), gits a piece a paper what has doctorate wrote on it, an commences usin it an all as though it was the real deal?
The question may be better suited if you ask, ‘is it legal?’Yes it is legal to find tax loop holes.If you can make a contract & the man sells you the car on paper for a set price but you agree to help him out with his daughter’s dental bills or what have you …is it legal? Yes!If your governor said he was going to use all used car sales tax to form a team of special agents to tax your church in every legal way possible would you look at it differently?________________Empty nest syndrome is for the birds!Email me at: [email protected] planters are focused on just one thing …introducing people to Jesus!
I would look at it no differently. If the church would be taxed legally then so be it until the law changes.
So legal is legal …right???________________Empty nest syndrome is for the birds!Email me at: [email protected] planters are focused on just one thing …introducing people to Jesus!
I don’t think it would be unethical. But many states that tax a car use the ‘blue book’ value. Now that there are so many ‘books’ I don’t know which the use because condition is not considered for taxes. YES, by gravy, that is WRONG but they do it.When you use the ‘rules for taxes’ set up by the state and feds and stay legal, what is the problem? Oh, there could be One problem, if the seller agrees and signs the title over, but the ‘detailing’ is not paid for, one might look foolish in court. ________________Some facts but mostly just my [email protected]/
So legal is legal …right???.
If it is not illegal, I’d say it is a conscience issue. The government departments or the courts may consider it illegal. The fact that the price of the detail job is so far above market price makes it suspect. If previous court rulings allow for this sort of thing, I’d say it’s a conscience issue.If it is unethical, then wouldn’t it be unethical to use other strategies to reduce taxes? An important question would be, who will do more good with that $7000? The individual or the government? Another question, is who does the money belong to, the one who earned it, or the government that will take the money as taxes if you categorize it a certain way________________
Do you mark General Fund or Tithes on your envelope ?
Frau________________I’m not saved because I’m good. I’m saved because He’s good!My website: http://www.bradfreeman.comMy blog: bradcfreeman.tumblr.com/
In the spirit of Tom Sterbens can you unpack that for us?For example, I restore and sell classic Corvettes. If I have one listed for $25k and the buyer wants me to paint it at a cost of $7500, does the purchase price now become $32,500 or is it 2 separate transactions? Either way, why?Thanks,Keit________________
In the spirit of Tom Sterbens can you unpack that for us?For example, I restore and sell classic Corvettes. If I have one listed for $25k and the buyer wants me to paint it at a cost of $7500, does the purchase price now become $32,500 or is it 2 separate transactions? Either way, why?Thanks,Keith
In the spirit of Tom Sterbens can you unpack that for us?For example, I restore and sell classic Corvettes. If I have one listed for $25k and the buyer wants me to paint it at a cost of $7500, does the purchase price now become $32,500 or is it 2 separate transactions? Either way, why?Thanks,Keith Thats so simple it hurts. The purchase price for the car is 25K. Exactly what you have it listed for. The 7.5k is an additional cost for labor and material that will be added to the car and taxed differently depending on how your state applies taxes to material and labor. I too buy & sell classics of certain types.So if I offer Keith $20k for the same car & he accepts the terms & I ask him to do a $5k detail job & deliver the car, I have technically made a legal purchase if he agrees to the terms. ________________Empty nest syndrome is for the birds!Email me at: [email protected] planters are focused on just one thing …introducing people to Jesus!
In the spirit of Tom Sterbens can you unpack that for us?For example, I restore and sell classic Corvettes. If I have one listed for $25k and the buyer wants me to paint it at a cost of $7500, does the purchase price now become $32,500 or is it 2 separate transactions? Either way, why?Thanks,Keith Thats so simple it hurts. The purchase price for the car is 25K. Exactly what you have it listed for. The 7.5k is an additional cost for labor and material that will be added to the car and taxed differently depending on how your state applies taxes to material and labor. I too buy & sell classics of certain types.So if I offer Keith $20k for the same car & he accepts the terms & I ask him to do a $5k detail job & deliver the car, I have technically made a legal purchase if he agrees to the terms. .
In the spirit of Tom Sterbens can you unpack that for us?For example, I restore and sell classic Corvettes. If I have one listed for $25k and the buyer wants me to paint it at a cost of $7500, does the purchase price now become $32,500 or is it 2 separate transactions? Either way, why?Thanks,Keith Thats so simple it hurts. The purchase price for the car is 25K. Exactly what you have it listed for. The 7.5k is an additional cost for labor and material that will be added to the car and taxed differently depending on how your state applies taxes to material and labor. I too buy & sell classics of certain types.So if I offer Keith $20k for the same car & he accepts the terms & I ask him to do a $5k detail job & deliver the car, I have technically made a legal purchase if he agrees to the terms. . So , Keiths long or short term capital gain will be based on 20k While the 5k detail job , as shady as it is , will be taxed as income which will probably bring his total tax bill higher than it would be if he just sold the car for 25k. Keiths tax bracket also has a bearing this. In a private sale I do not believe you are responsible for submitting a 1099 for the cost of the detail job. It’s up to Keith to make out an invoice for his own tax records________________Empty nest syndrome is for the birds!Email me at: [email protected] planters are focused on just one thing …introducing people to Jesus!