Buying a car with Gift Letter
 

So if you guys clued in with my previous posts, i'm in the process of buying a car :)...


It's a private deal, and how do i go about using a gift letter/form to waive the taxes? Is there a threshold where a car is not subject to tax (ie. <10k car is not subject to taxes). What are the chances of being audited for such thing?

Thanks guys for all your help. I hope i have unlimited thanks .. i will need them.

I take it it's not really a gift? Why risk being audited? If it happens you are screwed.

Best bet is to workout the taxes in the negotiating of the price with the seller, and have him report the car is worth less then it really is..

Either way is cheating the system, but if you are gonna go that route, make it the safest way possible
Posted via RS Mobile

Chances are slim but when it hits you, you will get in deep shit. Don't do it.

You can declare it as a low value car, it won't affect the market value.

When you go to register the vehicle if there is any doubt ICBC will call around and start asking questions to verify the information... don't get burned

How do I do that?
The is over 15k.

I heard the gift car/tax exemption thing stopped working May 1.

^ yes. instead of a letter , now you have to fill out a form.

IMO the question isnt what are the chances you'll get caught, but rather what will happen if you get caught.

for $2000 i personally wouldn't risk that. I remember selling a car for below market value (i needed it gone) and the lady at the insurance office was like woah so cheap?! i said there were problems with imperfections with it (dirty interior, scratches on the paint, worn out from tires etc.) so she said she'd make a note on the sale form that the price was adjusted according to condition of vehicle. she said she did that in case CRA audited me at least there was indication as to why the car was sold so low.

yeah just say that one of the cylinder is misfiring which is why it's so cheap

The car is listed at 15. My plan was to put it as $5000 , and pay the $600 tax.

^ are you chinese?

you could probably get away with 8 or 9g but 5? c'mon..

even at 9 its only 480 bucks more than what you originally wanted to pay for taxes

If you buy the car well below market value because of "mechanical defects" if ICBC ever inquired about it, then you could let them know you fixed the defects defects yourself. I dont really see how they would be able to prove anything.

If you gift it on the other hand, theyre going to wonder why a complete stranger is giving you a free car, and i dont really see what kind of explanation you would be able to offer them.

^ I found this thread after I created this: http://www.revscene.net/forums/selli...t608476p2.html

refer to post# 29 - the guy seems to work for autoplan.

I've heard recently that CTB-Consumber taxation branch is cracking down on gift vehicles. Some people who were gifting vehicles got caught with a bill in the mail for the taxes. Next they are likely to track down on people who are using 'price of vehicles under 90% value'.

"He's a plumber, I caught him sleeping with my neighbour's wife. He wants to keep my mouth shut and offers me a car at very low price."

man...so many hear say..i heard this and i heard that...

just fill out the form for gifting and see what happens..

Don't be a pussy and fill out the form.

Don't be a pussy and pay the damn taxes on the value of the car.

Scamming the government is still scamming, karma is a bitch.

What will you tell ICBC when they inform you they've subpoened the bank records of both parties and they have evidence that $15,000 was withdrawn from your account and deposited into theirs, coincidently on the same date the car was sold.

Taxes are less than lawyers fees.
Posted via RS Mobile

terrible advice... any real reasoning as to why he shoudl do this?

OP, You're spending 15 grand on a car, and are risking tax fraud because you wanna save $1200.... If you can't afford the taxes find a cheaper car.

your signature says "make the effort and take the risk.."...

if I were you, I'd just pay the taxes on what you paid and call it a day.

The thing you actually should consider is if shit hits the fan, how likely is the seller going to flip you?

Do you think the seller will stand by your side throughout the investigation? I'm willing to bet all my life's savings that the seller will flip on you the second he/she hears there is an investigation and pin everything on you.

Now that they have his/her word, what do you have?

this is the response i was expecting on RS

RS did not disappoint!

:fullofwin:

hahah, thats a racist statement/assumption. Pay your taxes, you will sleep better

This!

because its the purchaser's responsibility to pay the taxes....