In Taxachusetts you pay tax based on what the bill of sale says or what they have the value listed as in the DMV computer, which ever is higher. So you get screwed either way.

In NH the registartion fee is based on GVW, and price vehicle was new. And thye prorate the the fees depending on the age of the vehicle, so newer vehicles pay more.

 

[QUOTE=trident91;1583191709]Joewill,
Plus, I hope to eventually sell it for a profit (long in the future), so I'd prob pay more in gains down the road than the tax now.[/QUOTE

 

Well, you're not really "obligated" to chage the title in MI within 15 days. You will just pay a $15 "late fee" if you go beyond the 15 days. I've transferred them a year or more later. They don't care as long as they get their $15. Oh, and the west side of the state isn't like the east side- I went to the local SOS office today and was annoyed because I had to wait about 5 minutes.

 

Nothing is like the [south]east part of that state! The rest of MI is pretty nice.

 

I dont know anything about MD in particular, so I can only speak in general. First, what you call "loopholes" we usually refer to as "crimes."

I've worked a lot of financial crimes over the years, and many tax/title scams. There's always a genius who thinks he can come up with a way to steal tax money that no one has thought of before. They generally react poorly when they get arrested, thinking they were regular, average citizens... whats the big deal with tax/registration/insurance fraud? They deserve to get taken, don't they? The government/insurance companies are bad people. Right?

Again, not sure about MD, but your "Pickers Bundling" would be better known as fraud, or its other name, "felony," in most states. Plus, you would probably have to get the seller to go along with your scheme by perjuring himself and declaring that he did in fact sell you a document or a can of Pepsi for 15 thousand frigging dollars. Then you both get to repeat your story in open court. Let us know when this show begins.

That's my guess as to the "disadvantage." Your results may vary.

On #2 again, each state is different. Montana has been running a great scam lately, telling people they can set up an LLC and not pay taxes on high end vehicles. Then the smart states completely reject the obvious fraud and charge them full penalty, interest and fraud charges on a car everyone knows spends zero time in Montana. You could try that one.

On the Capital Gains question, yes you owe the feds for the difference of the amount you sold the car for, over the amount you fraudulently reported it was purchased for. Of course, the new buyer could himself agree to a false document and lie on his end of the transaction and keep the chain alive.

Just remember publically bragging about these types of fraud or tax scams on the Internet or in front of citizens like the rest of us that have to pay for the stolen tax amounts most often will result in a call to someone you dont want getting the info. Thats the number one source of our cases... pizzed off people sick of covering losses for the crooks.

 

Sorry for the delay, but yes I did. As well as a copy of the title.


Just remember that it is a legal document. So, if you have insure the car for 50k and bought it for 10k, that may come up if you file a total loss claim. But I agree, saving a few dollars up front in taxes isnt worth any risk of big money/issues later.

Andrew