Saving on sales tax
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Saving on sales tax
A friend of mine recommended if I was ordering a car that it would be okay to use his address in another county in California where the sales tax is 1% less than where I live. He then recommended that I go to the DMV and put in a change of address after everything has cleared through. For a $33K car that would be a savings of over $300. Anyone tried this??
MBWorld Fanatic!
Joined: Nov 2001
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From: Earth
GLB 250 4matic
here's the save on tax schemes thread
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Thanks Young, but that thread is between states. In my situation, I live in California, only a county away from the area which is 1% lower, so I stil think it wouldn't be a big deal. What do you guys think.
Out Of Control!!
Joined: Nov 2001
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From: Westwood, NJ
2004 Civic Si. FWD for the Win!
I agree with old as dirt what's his name. Taxing jurisdictions just aren't that dumb. I'd assume that you'd get a bill in the mail when you re-do the addy, or get audited (even worse!)
Technically, you should declare a use tax on the differential on your CA income tax return, since you're using the product in a lower tax jurisdiction (like buying clothing in PA when you live in NJ, to use a local example).
CA is generally very aggressive on these kind of tax haven situations, so I'd be careful and ask myself if $300 is worth being someone's *****.
Let's see: $330 on a 5-year loan equals $5.50 a month, ignoring interest. Not worth the trouble.
Technically, you should declare a use tax on the differential on your CA income tax return, since you're using the product in a lower tax jurisdiction (like buying clothing in PA when you live in NJ, to use a local example).
CA is generally very aggressive on these kind of tax haven situations, so I'd be careful and ask myself if $300 is worth being someone's *****.
Let's see: $330 on a 5-year loan equals $5.50 a month, ignoring interest. Not worth the trouble.
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From: Chicago
C32 AMG
Sorry, but it's gonna get worse!!!
Sales tax is forecasted to go up nationwide as states look into beef up their budget for a weak economy. The only semi-bright note is that the luxury tax is being phased out. It is down 1% this year and will be done with after next (I believe). I agree with Tommy, avoid red-flagging the IRS, it's not worth the risks.
