|
|
| *Loan,banking and credit>>>car tax |
If you bought a car and paid a lump sum for extra parts? How much are the taxes.? |
I bought a car recently and I paid a lump sum, say 10,000. It came with extra parts worth well over a thousand dollars. What do I tell the court house how much the car cost. It doesn't have to be on the title and there doesn't have to be a bill of sale. Does anyone know of any law or what you're supposed to do? I just want to pay the taxes on what the blue book value is. It'd save me a few hundred dollars. What I would do is determine the taxable value of the car and parts, and this is normally how it's done when you make a trade with multiple items for a single sum. You have to determine, as closely as possible, the fair market value of everything involved, given or received. I'm assuming you made the following trade: $10,000 cash in trade for Car car parts Look at the items and see if any have a stated liquid value. In this case, only the cash has a determined value (other things might be the balance on a loan or a cash equivelant, such as a cd or other investment). Next, look at the items and see if there is a ready market for determining a value day to day (such as stocks). In this case, there aren't any. There is no retail outlet where you can buy the exact car or parts at a non-negotiated price. Next, see if there is anything that has a readily estimable value. In your case, you can look up the value of the car at www.kbb.com and come pretty close to what the market will bear. That leaves only the car parts, so you can work a formula: $10,000 minus the Kelly Blue Book for the car equals the value of the parts as a whole. If you want to , you can try to estimate or allocate a value to each of the parts, but your estimation will have little authority or use. |
| Tags |
| tax tips tax year income tax business tax car tax child tax cigarette tax corporate tax estate tax import tax |
SiteMap--Copyright/IP Policy--Contact Webmaster For personal non-commercial use only. |