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Old 07-30-2010, 10:50 AM   #62
Blackfly
 
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Drives: 2002 Camaro SS/ 2011 Camaro SS
Join Date: Jun 2010
Location: Katy/Pearland/Cypress Texas. BITCHES!
Posts: 162
Quote:
Originally Posted by jrhaus76 View Post
In most states you pay it on your income tax. For example (and this varies by state)... Say the MSRP was $35,000. He does not have to pay sales tax... he didn't buy it. BUT he would need to claim the $35,000 as income on his 2010 federal and state taxes.... So the amount of tax varies. If he makes $200,000 a year, a bump to $235,000 wouldnt change is tax liability as much as if he makes $40,000 a year, now all of a sudden in 2010 he makes $75,000... in the end he will pay about 15-20% in taxes. Not too bad, $5200-$7000 for a new 2SS/RS! If he can't afford or doesnt want to pay it, he can sell it, still pay the taxes and then pocket the profit. If it were me since I don't have a free $7000 lying around, I'd just sell the car to my wife for $15,000, have a small payment, pay the the taxes and use the rest for mods... you'd still be WAY ahead!
WOW! I like the way you think! Got CPA?! lol!
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