About a sales tax on race car
04-05-2013, 01:25 PM
#1
Cruisin'
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About a sales tax on race car
If you buy a "pure race car" - for cash - can you not pay a sales tax?
By saying a race car - I mean factory built racer: 911 cup, Lotus cup, Viper competition, Ferrari Challenge, Radical, Group-N Rally, open wheel ...etc so everything that doesn't have a title of ownership and doesn't require DMV involvement.
Since there is no title - DMV would not have any records on this car at all. Assuming you bought the racer out of state in USA - seller doesn’t charge you a sales tax. How else would IRS know that you just made a cash purchase out of state? It's just like buying a tractor or a couch in NJ at tractor store or a furniture store and taking to a different state.
By saying a race car - I mean factory built racer: 911 cup, Lotus cup, Viper competition, Ferrari Challenge, Radical, Group-N Rally, open wheel ...etc so everything that doesn't have a title of ownership and doesn't require DMV involvement.
Since there is no title - DMV would not have any records on this car at all. Assuming you bought the racer out of state in USA - seller doesn’t charge you a sales tax. How else would IRS know that you just made a cash purchase out of state? It's just like buying a tractor or a couch in NJ at tractor store or a furniture store and taking to a different state.
05-03-2013, 04:34 PM
#2
Instructor
Internal Revenue Service likely could care less about whether or not you pay state sales tax.
Most out of state purchases brought in-state will require payment of a state use tax (usually equal to the sales tax rate).
Check with a tax professional in your state.
Most out of state purchases brought in-state will require payment of a state use tax (usually equal to the sales tax rate).
Check with a tax professional in your state.
