Sales tax on used parts and why...

they are really getting desperate..arnt they?

hard for them to opperate and supress us with out our money

 

God I love Oregon.....No sales tax

 

That why they call it Capital Gains. Only the Capital gains. The rise and fall of the roman empire seems to be not out of reach in this country. I dont know maybe im old skool.

 

We are taxed when we sell accept payment and when we ship,Not this site Enough is is enough This will ruin the flea markets So much for the countries morale ,

 

Even if you trade/barter an item/work for something else of value (cash, things, labor), both parties are SUPPOSED to claim that as income. The idea there is both parties received something of value in exchange for their goods, services, or cash. Therefore, it's taxable. Don't believe me? It's in the IRS tax code, and in the tax code of nearly every State.

It's wrong as hell, but it is there.

 

Seems like you can thank Woodrow Wilson for a lot of this bullshit, he was a commie son of a bitch from what I've been able to gather, but most of that's been scrubbed out of the history books.

 

You are required by law to report the $100 as "INCOME"?
Don't I have a capital loss?

No. The vehicle isn't a capital investment, and the drop in value is a combination of your use of it, normal wear and tear, and depreciation.
Whoever told you it's income should go back to knitting - this is only a problem if you can't demonstrate what you paid for it (then they just assume it's all profit). It's a loss, but not a tax deduction.

All items in America are charged sales tax
"America" doesn't charge sales tax, huge differences between states, cities.

This is the only time they are required to collect a sales tax on an item. When it was new.
All sales to the end user are taxable. New has nothing to do with it - it's simply the earliest, and most common.

After an item has been sold once, it is no longer new and thus, it is not subject to tax collection, wether it be state sales tax,federal sales tax, or whatever kind of tax. It is a used item. It's tax has already been collected.

Tax is collectible from every person who uses it. The only so-called "exemption" (dealers) aren't exempt, it's called a deferment - they either collect the tax from their retail customer (if they don't use it), or pass the tax along if they sell to a wholesale customer (who taxes their retail customer).
The exemptions are pretty narrow: some clergy, agriculture, educational, charitable.

That's now.
What Obama wants is what Europe has now (because they're doing so much better than us, right?), it's called VAT (value added tax).
How does this work?
Every transaction is taxed, regardless of whether the next owner is a user or dealer (your Chevy dealer pays VAT to GM).
Every service or improvement increases the value, and adds to the tax.

Just what we need.

 

...and I love living 90 miles from Oregon...no sales tax in Oregon and no state income tax in Washington

 

It's wrong as hell, but it is there

Sorry, I don't understand.
Would you prefer that people who can arrange their services to appear as exchanges not have to pay tax - but you do, because you can't afford their lawyers and accountants?
The IRS is not interested in whether you gave the local kid a bicycle instead of money for mowing your lawn, but the law has to be there.

Woodrow Wilson for a lot of this bullshit, he was a commie son of a bitch
Ah, yes - that source of all evil in the world - a commie.

In my experience, "commie" means "someone beating me in an argument, and I can't find anything to blame on him" - you know, much like when Sharpton says "racist"?

 

this shit is making my head hurt! damm better be quite they might want to tax my headache!

 

And soon we'll have $trillions more in deficit because of gov programs meant to prop up their bacon and lobbyists (I though BarObam was getting rid of them?) and then health care to save the USA from dying (the made up flu) and then the world governemt menat to save the planet from climate change and then.... You think we have too many taxes now? Wait a bit, the f'ucked up politicos ain't done with us yet.

What about that underground economy? Anyone on here ever hear of that idea? M,mm, might have to check it out.

Mikey

 

I live in NY State, the tax capitol of the world.
They are actively searching for a way to tax the air we breath.

Having been around NY long enough, and involved in the hobby, and swap meets both as a vendor and customer, I have had to deal with this.
A few years ago we held a Corvair Convention in Buffalo. For the first time at a Corvair convention vendors had to collect sales taxes. We lost over half of the potential vendors as they refused to become agents of collection for the state of NY.

But the way the law is written, both the vendor, and the person(s) running the event atre liable up to 500 per person per day in fines for not having a valid NY state tax ID. So we had to make the vendors get the ID, or not vend.

NY has gone after Amazon.com and they now collect taxes on items shipped to NY.

On my yearly tax form, I am supposed to claim what I purchased out of state and pay NY tax on it. Also any Gas, cigarettes or merchandise bought on an indian reservation.

Sales tax in NY are defined as a tax on "real property", so a used car, used part etc qualify.

I'm sure some other states do it the same way.............

 

My mom and dad worked for decades and paid taxes all along and now that they are dead we have to lose 46% of everything to taxes. Double dipping, I think that's what it's called.

 

Nice to see someone with reason and logic weighing in on this. Good catch on the Ad Hominem attack against Woodrow by rustynewyorker, as well

 

In Washington State, you have to pay tax on a used vehicle-even though, yes, it was taxed when it was originally sold new. The State, in some cases, stand to make a lot of money off, of that car, far more than the original manufacturer did-depending on how many times it is sold. With the economy-such that it is, you can bet there will be new, and increasing taxes on items, due to the loss of your income tax-because there are more people out of work (fewer tax payers), and the people who are working are spending less-they will make up the difference somewhere-count on it!

 

there is a little more to it than meets the eye

your scenerio assumes that you took normal depreciation deductions as allowed by law. after a few years, you would have depreciated your truck to zero value., and deducted the loss

....so at the time of the sale, you basically took a worthless vehicle, and sold it for 100 smackers. that now becomes 100% profit.

that same deal happens alot with gas stations, they depriciate them so far, then its cheaper to tear down and rebuild than to start paying the tax on the benifit of a building that costs you nothing.(so ive been told, never had one of those)

in cal, they want sales tax on used, or new parts and cars, and if you trade in your car, you pay tax on the sale of the new one, no ded for the old car already taxed......

i agree its a bunch of bullshit, especially when you consider what they do with the $$$



skull

 

thats property tax, i just got visited by those pricks.

there is a threshold of value before you start to pay, i beleive its like 100grand or so in equipment.

i havent seen them in years, suddenly the economy sucks, and here come the state jack offs looking for your money


skull

 

So you buy a car for $20000, and over the life of the car it gets resold a few times, for $10000, then for $8000, then for $5000, then for $3000 then for $1000. The amount of tax collected @ 6% is $2820.

And this is not including the income tax you were already charged in order to pay for the carwith whatever you had left in spendable income (after May of each year). nor does it take into acount the amount of excise taxes the local gov gets each time you register the car (in Maine they use the price of the car when new to calculate that tax).

I won't include gas taxes, since this tax is a pretty "fair" user tax since it pays for the roads you drive on. The more you drive, the more you use the roads, the more tax you pay to fix the roads you drive on! Roads are not an entitlement.

BUT! I guess the point is that the states and towns have a pretty good deal going when it comes to cars and trucks!

 

id say they do, lol

if you think of all the different taxes you pay, it's staggering. and its only been in the last half century that it really got bad

most of our infra-structure was built with small tax base. now it all gets wasted


skull

 

If you use a vehicle in business and fully depreciate it on your income taxes, anything you sell it for is a taxable gain (actually called "recaptured depreciation).

One way out is to give the vehicle away for free as a gift to your parents or your children.

 

PANIC has it right............whether we like the State & Federal tax codes or not, they are there. Since we all benefit, to a greater or lesser degree, from government expenditures, we all have to pay some portion of it. Since the upper income (top 2%) pay about 50% of all the federal income tax paid, THEY should be the one's hollering the most. As for "sales tax" or "use tax", people who spend a lot on goods (the rich?) they also pay a hefty portion of that too. So they pay the most, coming and going.

Nobody LIKES to pay taxes, I certainly don't enjoy it, never did, probably never will, but that doesn't mean some amount isn't necessary, it is. Most people would agree with that........all we're arguing about is about how much and by who......

 

Yep....

Don't blame just them, it's both sides fault/problem.

 

Cause it is a "Sales tax". tax is on the sale . What is being sold is irelevant in most cases. I hate taxes but it is a fact of life. I remember when it first came in here in Ontario.
Don

 

There's no legal difference between cars and other stuff. The only reason why they go after cars is:
1. big ticket item (it's worth their time to go after it)
2. the sale is recorded, so they catch you

They're not letting anyone slide on re-sale of an old TV - it's just not worth their time to set up an entire bureaucratic nightmare to collect 8% of $50.

They do pretty much the same thing on real estate, but since the sale price itself doesn't have to be recorded (only the title transfer), they have a "recording tax" on mortgages - every time the mortgage is renewed (or re-fi... didn't your bank warn you?) the County gets like 2% of the mortgage.

 

BTW: the reason why your mortgage interest doesn't reduce your capital gain on sale of a house is that you already claimed the interest every year.
If, by some weird chance, you only took the standard deduction (and never itemized the mortgage interest) you might have a capital loss on a house sale.
The interest alone for a $300K 30 year mortgage at 6% is $347,514, so if you sold it for $647,514 you only break even.
The only reason why the amount above $300 is taxable is that you already used up the interest deduction.

 

Your wrong- while I agree with you on the basic premise that something should not be taxed after the first time it is sold, the tax laws are written so everytime something is sold at retail, new or used, it is subject to tax. Perfectly legal. For instance, a car can be subject to tax a hundred times if it turns over that many times.

That's the LAW. A lot of internet sales are not subject to tax because of a Federal law that says if the seller does not have a physical location in the state that the item is being delivered into he does not have to charge sales tax.

For instance, if you buy something from NAPA over the internet, NAPA has to charge tax if they have a store in the state that you live in. If NAPA has no store in your state, they do not have to collect sales tax.

You will note that some vendors on ebay say no tax unless you live in the state where they are located.

 

I was told but NOT able to prove it on the internet or anywhere else that you are supposed to forward sales tax to the state you are in for out of state mail order purchases. Not that anyone does.

My experience with my car seems to validate that. I paid sales tax to PA for mail order purchases, that did not already have a paid sales tax, when titling/registering my car.

 

The mighty ones are working on taxing all internet sales. they are just trying to figure out how to do it fairly.

Its a huge can of worms, but will be sorted out eventually.

Why do you think ebay forced everyone to go to electronic, ie, traceable payments as the sole approved method of payment?

Sure, you can still go around it, but there is a record of the sale. The man will assume you got paid..and tax you.

Swap meets are a little easier to cover, but the tax lady was at the last 2 swap meets I went to checking vendor status.
She had the form you filled out at the beginning and was looking for the guy who filled it out at his spot.
She then made a determination by how much stuff, and what sort of stuff you had, what kind of cash you made. Took notes and photos and left.
Its coming..

 

It is the law in States with sales tax that purchases made from a vendor where no tax was collected (typically an out of your State vendor)ARE subject to a "use tax" due and payable to the State in which you reside/operate.

I am a retired new car dealer and recall having a sales tax audit some years ago. The auditor stayed a full month, determined to find SOMETHING, as we sold a thousand cars a year, hundreds of thousands of dollars worth of parts etc., wholesale and retail. The wholesale parts were theoretically exempt to the wholesale buyer, who would ultimately charge his retail purchaser the tax. However, if we did not have on file the wholesale purchaser's Exemption Affidavit, properly filled out and current, WE were liable for the tax.

The audit outcome resulted in our owing around $4000 to 4500 in use tax for products we purchased for internal consumption, not for resale. For instance, office supplies, cleaning supplies, maintenance materials etc., that were purchased from out of state vendors.

But, I am pleased to say, we were clean as a whistle overall, in the areas of serious potential tax liability and the auditor did'nt even collect enough to pay his wages for the period involved. My Office Manager got numerous Gold Stars and Atta Girls for her performance in keeping us in accordance with the law, but for the exception noted.

 

thats the way i understand it as well