How to avoid high state sales tax

[Texas Sunshine]

In Texas it is 6.25 percent of sales price, minus any trade-in allowance. I love Texas.

Sponsored

 

[coolrain]

Death and taxes....

 

[coolrain]

"If you itemize deductions on Schedule A, your total deduction for state and local income, sales and property taxes is limited to a combined, total deduction of $10,000 ($5,000 if married filing separately).

You have the option of claiming either state and local income taxes or state and local sales taxes (you can’t claim both). If you saved your receipts throughout the year, you can add up the total amount of sales taxes you actually paid; however, your deduction is limited to $10,000 ($5,000 if married filing separately) for a combined, total of state and local income, sales and property taxes."

If you live just outside of NYC and have more than one pot to piss in your at that $10k just in property taxes.... they get you one way or the other

 

[AKaye]

Won’t work in CA they like double triple taxing you here.

Of course CA is one that wouldnt allow it...

 

[Granger Ford]

If we're on the topic of in-defensible frauds, this is also a good idea as well! This would hold up to IRS scrutiny about as well as stating "I heard it online!".... Even their most junior auditor would disallow this.

Please remember that the IRS can only go back to the year you were born when investigating fraudulent tax claims.

(Sorry, i'm a Federal compliance auditor and have a few State Auditors in the family as well)

Actually 7 years unless you keep the records longer and bring them in...

Destroy anything over 7 years old for tax returns...

Been audited twice...

 

[Rick Astley]

Actually 7 years unless you keep the records longer and bring them in...

Destroy anything over 7 years old for tax returns...

Been audited twice...

They chose to stop at 7 years. There is no limitation placed upon them that limited them to 7 years..... Most people don't get double-dipped unless they didn't learn from the first audit, just flagged for a desk review.

I help plenty of people with IRS audits annually (half of my firm is the field of tax, the other is federal compliance)

 

[buckthis]

Easy. Get a PO box in Florida and register it here, a lot of folks from the Northeast do it, they also register to vote with the added bonus they get to vote twice in the general election. Big thing in South Florida.

really?

 

[Garbone]

really?

Miami area, some folk I have known were legit in that they had seasonal businesses up north and wintered south but a lot of retired folks work the system. Not saying it is legal or right but it is done. Screws up things for those of us who actually live and work here.

That election night boost in Broward that happens every cycle, yup.

 

[rand442002]

This whole topic is part of why I was so happy to move to MT. My '91 W250 is old enough that I got permanent tags for ~$250. Even got a specialty plate and don't have to pay the yearly fee with the permanent tags.

 

[WuNgUn]

I think he is Canadian so it's metric and doesn't work like ours does

Metric tax.... Yeah, no. I wish
Ontario Canada

 

[69351windsor]

I just recently moved from Michigan to Washington. I was living in Michigan when the reservation was made but will be in Washington when I take delivery. Seeing that Washington sales tax is about 4% higher than Michigan I was thinking I would just take delivery from a dealer in Michigan or another state with even lower sales tax. The closer I looked it seems that regardless of where I take delivery I would still have to pay Washington's crazy 9.7% sales tax. Does anyone have any insight into how this can be avoided? Am I missing something here?

Sorry for the redundancy I know its been answered on here already but yes it's friggin' cringeworthy here in Washington State with taxes up the patootie..There's no way out of it really, I've looked for workable loopholes for years but quit because in the end one way or another they'll getcha coming, going & standing still. Yes they've thought of everything. AND some of the penalties & other pain accompanying getting caught is well not worth it. All sucks, but its reality. ?

 

[pan-y-cerveza]

Metric tax.... Yeah, no. I wish
Ontario Canada

I wish I still lived in Alberta. We always hold of on big ticket purchases until we go back to visit and buy it there. Too bad that doesn't work with vehicles.

 

[chtucker]

Sorry for the redundancy I know its been answered on here already but yes it's friggin' cringeworthy here in Washington State with taxes up the patootie..There's no way out of it really, I've looked for workable loopholes for years but quit because in the end one way or another they'll getcha coming, going & standing still. Yes they've thought of everything. AND some of the penalties & other pain accompanying getting caught is well not worth it. All sucks, but its reality. ?

I can't complain as I am fortunate enough to have bought it, but try understanding the annual excise tax on a boat (28' twin 300hp outboards and new)... Sales tax almost $22k!! Then annual excise taxes around 750-$1250 (decreasing slightly since new)

 

[steverollin]

Montana is getting wise to this methodology. I have motorhomes under an LLC in Montana and am ready to license them in NV.

This was the trick for people who had huge car collections ten years ago I remember. Saw an SLR mclaren yesterday with Montana tags and it reminded me of this. So no longer possible to do? Would never be worth it for a Bronco but if you have a million in cars, forming an LLC in montana seemed worth the effort

 

[WuNgUn]

I wish I still lived in Alberta. We always hold of on big ticket purchases until we go back to visit and buy it there. Too bad that doesn't work with vehicles.

They still have to pay the GST though...?
I remember being out there years ago and there was ZERO tax

Sponsored