Sale of tractor taxes

[lugbolt]

re:

here, you pay tax on any vehicle sold that is over $4000.

Here in Ontario, ALL used cars and trucks get taxed at 13% AND you PAY the greater of THEIR 'bluebook' or the actual sale price ! Say you buy a non running pickup(for the xfr case), $100 sale, 'bluebook' says $3500.
You pay 13% on the $3500 even though you only PAID $100 for the wreck....... Nice, eh !!!

that kind of stuff is a deterrent to the purchase of said items. I've explained this to our governor, and he actually listened. But nothing changed, other than the threshold for sales tax went up from 2500 to 4000.

oh and if one sells a car for 4000.00, and claims 3999.99 on the bos, that is also illegal and punishable. I forget what they call it but it costs you a lot more than a penny.

 

[Henro]

In PA, If i buy a new car and trade in something, the trade in value is deducted from the purchase price and I pay sales tax on the smaller number, and whoever buys my trade in pays tax on the sale price the dealer gets for my trade. That seems fair.

BUT if I sell my car to someone, rather than trade it in, the buyer pays sales tax on the paid price, and I pay sales tax on the full price of the new car I buy. This is wrong. Double taxation. Then if the guy that buys my car which I decided not to trade in, sells it someone else, taxed again. Triple taxation.

 

[Steppenwolfe]

I sold my 2012 MX 5100 this summer. Wrote the buyer a bill of sale; his responsibility to pay any taxes, not mine. And, since I never wrote off any of the MX when I had it, no tax liability for me.

 

[aaluck]

if you are gonna use it you pay tax on it which is in my opinion double taxation since you pay tax on personal property, tax on gas/diesel, tax on basically every aspect....just gets my blood boiling.

The beast we all feed is very large and very hungry..........

 

[Tpack]

I bought a new L3901 in 2015. The salesman asked if it was ag exempt and I said that I didn`t qualify. Said I would be the only person in our county that paid taxes because I didn`t qualify for the exemption and I lived in the country. He filled out the exemption form for me and saved me a butt load of tax money. I still don`t think I qualified, but don`t have any issues with not paying the taxes.

Let`s Go Brandon

 

[fried1765]

re:

here, you pay tax on any vehicle sold that is over $4000.

Here in Ontario, ALL used cars and trucks get taxed at 13% AND you PAY the greater of THEIR 'bluebook' or the actual sale price ! Say you buy a non running pickup(for the xfr case), $100 sale, 'bluebook' says $3500.
You pay 13% on the $3500 even though you only PAID $100 for the wreck....... Nice, eh !!!

It is Socialist Canada!
Unfortunately, you are stuck with the give 'em free stuff Socialist system.
Tax! Tax! and more Tax!
Same in Socialist countries around the world!
The USA is moving closer every day!

 

[jyoutz]

private sale, don't worry about it

buying from a retailer who has a tax ID, yes you're probably gonna have to pay tax on it unless your state has laws on the books that specify otherwise

here, you pay tax on any vehicle sold that is over $4000. It it ridiculous. Tax was paid when purchased new. Then it's sold, tax paid again. Every single time it's sold it is supposed to be taxed. It is not just sales tax. It is called sales and use tax. if you are gonna use it you pay tax on it which is in my opinion double taxation since you pay tax on personal property, tax on gas/diesel, tax on basically every aspect....just gets my blood boiling. A few years ago they exempted farmers who file the farm tax exemption but they are cracking down on that too since many owners of 40 acres or more are considering them farms so they can avoid taxes, then they're using their "farm equipment" for recreational use. Side-by-sides have been targeted as of lately and I hear they are basically going door-to-door. I ain't got no farm so I can't speak with firsthand experience in that sense. I just see what's going on with the owners of vehicles that I service/repair at the shop.

In my state, the buyer pays sales tax on a vehicle when you register it with MVD. The seller pays no tax. The buyer would also pay sales tax on a tractor purchased in state. Since we don’t register a tractor, there is no mechanism for the state to collect taxes on the purchase if out of state.

 

[aaluck]

just gets my blood boiling.

Amen. Enough is enough already. A couple of years ago I decided to actually see how much of our family income went to taxes. I added up all of it. Phone bill taxes, electricity taxes, sales taxes, tag taxes, gas taxes, income taxes, self-employment taxes, property taxes, capital gains taxes, on and on. When it was all said and done it is more than 40%.

So to answer the OP. Hell no unless they bang on your door and demand it.

 

[85Hokie]

Yep - I agree with Hokie. I’m no expert, but private sales of personal property don’t require any reporting I’m aware of.

That said, understand some states do treat personal property differently than others.

I came back to this topic due to a "like" and then I realized that NOW if you use PAYPAL or any OTHER internet paying method ........... ol uncle sam now wants to report that as income if over $600 .........

so as the old saying goes - and I live by it ........

"CASH IS KING"

 

[sagor]

It is Socialist Canada!
Unfortunately, you are stuck with the give 'em free stuff Socialist system.
Tax! Tax! and more Tax!
Same in Socialist countries around the world!
The USA is moving closer every day!

Well, yes, we pay a lot more in taxes in Canada, but some things are free via the government that grabs all that money.
My person experience is I spent 3 weeks in December in hospital due to Sepsis. Cost to me, zero, nada, $0. (well, I had to pay $45 for an ambulance ride). No special insurance required, it was covered by government. At home, I had to use a portable IV pump for a few weeks with antibiotics that cost $3000 a week. Cost to me, zero, nada, $0.
So it is all relative. More socialist countries provide more services at no cost. The more capitalist countries require you to buy health insurance, which is not cheap. If insurance bails on you, you pay out of pocket.
There are pros and cons to all these "systems" in various countries. Not going to dispute that.
What bugs me more is our gas prices and taxes on top of that. We produce oil, yet get ripped off at the pumps. Federal government even taxes the provincial tax on fuel (tax on the tax). That burns my butt....
As an aside, felling much better now, but I still have potential surgery in the near future. Cost will still be zero...

 

[DustyRusty]

Would you get all this free medical care if you were 80 years old? Most socialized medicines discriminate against the elderly in favor of treating the young.

 

[sagor]

Would you get all this free medical care if you were 80 years old? Most socialized medicines discriminate against the elderly in favor of treating the young.

Fake news....
Just the opposite. I'm 69. After age 65, most medications are covered under government plans (for seniors), at least in some provinces (not sure about others).
Free hospital is regardless of age. My mother was in her 90's and was in and out of hospital a few times in her last years, all covered, including homecare visits. I got free homecare as well, when required (especially at first, when I needed daily nurse visits). Now it is just weekly visits.
But yes, there are downsides. Government spending on hospitals have taken a hit since the pandemic, so there are more issues with staffing and other things. But that holds true in many other countries as well

 

[fried1765]

Well, yes, we pay a lot more in taxes in Canada, but some things are free via the government that grabs all that money.
My person experience is I spent 3 weeks in December in hospital due to Sepsis. Cost to me, zero, nada, $0. (well, I had to pay $45 for an ambulance ride). No special insurance required, it was covered by government. At home, I had to use a portable IV pump for a few weeks with antibiotics that cost $3000 a week. Cost to me, zero, nada, $0.
So it is all relative. More socialist countries provide more services at no cost. The more capitalist countries require you to buy health insurance, which is not cheap. If insurance bails on you, you pay out of pocket.
There are pros and cons to all these "systems" in various countries. Not going to dispute that.
What bugs me more is our gas prices and taxes on top of that. We produce oil, yet get ripped off at the pumps. Federal government even taxes the provincial tax on fuel (tax on the tax). That burns my butt....
As an aside, felling much better now, but I still have potential surgery in the near future. Cost will still be zero...

I spent six days in the Yarmouth Nova Scotia hospital in 2018.
My USA insurance picked up all costs.
Bill was $22K CAD.
My USA insurance cost is about $5,000 CAD per year.
If I had paid 15% HST in the USA that year I would have likely paid about $14K CAD.
Assuming that I did pay $5,000 CAD in US state sales tax, I estimate that I am still about $4K CAD ahead.

The biggest and best benefit for me is that I can go to any hospital I may choose, at any time, without any prior approval.
My best comparative example is when your BC MP, Jack Layton, died of metastasized prostate cancer in 2011.

Proton radiation for prostate cancer was NOT available in Canada then, and is still NOT available in Canada.
Jack Layton simply did NOT have state of the art proton treatment available to him!
There are currently 39 proton radiation treatment sites in the US.
The cost for my treatment in 1996 was $65,000 CAD (cost now is in excess of $125K CAD).
I was 55 then, and am 81 now!
I paid a $2250 CAD equivalent deductible in 1996.

Having been a seasonal resident of Nova Scotia, for a number of years, I have very carefully observed just how the Canadian health care system works.
I realize how fortunate I am to be able to make my own health care choices, rather than having the government select them for me.
I suspect that Jack Layton, and his wife Olivia Chow, would have chosen a proton radiation cancer treatment option, had it been offered.

Interestingly, former Newfoundland Premier Danny Williams chose Miami for heart surgery, and he certainly had to pay his own way.

 

[Ikc1990]

I believe this post will be closed to comments soon due to its turning into a political battle in future all I see is that we all put our pants on one leg at a time. But what dose most of this post have to do with tractor ag tax... just saying drama drama...

 

[ACDII]

I find it all very "taxing".....

 

[Henro]

Thanks everyone. I've tried to keep this cash only but the best offer I'm getting is from a guy who owns an excavating business and he wants to pay with a certified check. Just want to make sure it doesn't come back to burn me tax-wise.

I am guilty of not reading the following posts...

BUT in my state, the buyer pays the sales tax, not the seller.

So you would be as the seller home free in PA I am pretty sure, as the seller.

Just my guess though, as a person that paid sales tax on purchases many time, but never had the seller step up and pay them....

Edit: got the seller and buyer reversed. corrected now...

 

[fried1765]

I believe this post will be closed to comments soon due to its turning into a political battle in future all I see is that we all put our pants on one leg at a time. But what dose most of this post have to do with tractor ag tax... just saying drama drama...

Some posts "dose" not have any direct connection to tractors, but do have learning/information content that can be very meaningful.

 

[jyoutz]

The buyer is the one to pay taxes, not the seller. The only time selling requires tax payments if if it is sold through a business as a manufactured good, or third party retail.

If you were to make plaques and sell them as a side business, then you are obligated to paying taxes on good you produced and sold, but, if you charge tax on the sold goods, then that tax is forwarded to the IRS as sales tax, then at year end or quarterly you must pay taxes on your sales as income after deducting expenses.

If you purchase a car, truck RV plane train or tractor, and it is not farm use exempt, then you paid sales tax on it at time of purchase. This is an asset to you. If you turn around and sell it for less than you paid, then it is a loss, you would not be required to pay any tax because you already paid the tax. If you flipped it and earned money on it, then you could be liable for the tax on the earned income amount. Chances of getting caught on that are slim to none.

I don't know how sales of farm exempt equipment is, but more than likely, who's going to know.

Where the Gubment DOES get you twice on taxes is when transferring the vehicle to a family member. If I sign the car over to my wife, she has to pay taxes on it based on the book value. Same if you give a car to your kid and sign it over to them. However, IF you put your wife's name in addition to your name, then no taxes are due, that way when you drop dead, her name is already on it and no taxes will be required to be paid when your name is removed. That holds true only for the spouse, not the kids though.

Unless the tractor has to be licensed, No one will know, so sell away and enjoy the cash.

Vehicle registration can list any number of owners and they do not have to be your spouse. I was on the title of my sons’ vehicles. The language you use when registering is John Smith or Mary Smith, or Joseph Smith, etc…. The key word is “or” not “and.” Also in my state, there is no charge to change names on an existing registration; the sales taxes are charged when the vehicle is initially registered to one of the names on the registration. If the vehicle changes hands, then they assess taxes.

 

[lugbolt]

every state is different

here only motor vehicles are subject to taxes

farm equipment is not considered motor vehicle, unless it's a truck or car that is used on state, county, or city maintained road. If you use it strictly on the farm, it is exempt

motor vehicles also include boats that are powered by >50hp engines, boat trailers, utility trailers, atv/utv, etc so long as they are not farm use only, which carry a different set of regs

sales and use taxes are collected at the time of registration of the vehicle unless the sales & use tax is financed in. Don't finance, or register it, don't pay no taxes. LOTS of UTV's and ATV's are unregistered!

I pay every tax I'm supposed to but they keep wanting more and the more they want it seems like the more screwed up the system gets, and the less motivated I am to pay up. For that reason I went back to an old car, which has no sales tax (under the threshold) and very little PP tax compared to the "new" (to me) one that I just got rid of. I told myself that a "new" vehicle was ridiciously expensive, and they are, and bought one anyway....and reminded myself why that thought stuck with me. Luckily I was able to sell it back and make money. Probably never happen again.

 

[ACDII]

Vehicle registration can list any number of owners and they do not have to be your spouse. I was on the title of my sons’ vehicles. The language you use when registering is John Smith or Mary Smith, or Joseph Smith, etc…. The key word is “or” not “and.” Also in my state, there is no charge to change names on an existing registration; the sales taxes are charged when the vehicle is initially registered to one of the names on the registration. If the vehicle changes hands, then they assess taxes.

That last line. If I were to have my wifes name put on, and mine removed, they would tax us on it, even though no money exchanged hands and the car goes to my wife. Stupid state of IL. I have to do it in stages, put her name on along with mine, then a year later I can have my name removed, if she so wishes.