Taxes: used bike from private seller
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Thread: Taxes: used bike from private seller

  1. #1
    bikes and boards Array stef's Avatar
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    Question Taxes: used bike from private seller

    I am new in BC and I just decided to buy a used sportbike (2003 model) from a private seller.

    What is the real truth about taxes? Some people say there is no need to pay taxes on this kind of deal, others say that I have to pay taxes in order to get insurance.

    Any advice to safe a couple bucks? I am not looking for something illegal and also I am not interested to bring the seller in trouble.

    Second question is about insurance. What is the best (cheapest way) to get insurance?
    Does it matter where I go and with whom I am dealing with or is it just the type of insurance I chose?

    Thanks for your help

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  3. #2
    Been there, Wrecked that! Array CrashTested's Avatar
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    Welcome to BCSB damn you newbies with your double posting!

    You have to pay PST on the declared value/what you paid when you register it.

    ICBC - government insurance, unless you meet all the requirements for private insurance. DO a search it has been covered many times.
    Last edited by CrashTested; 01-02-2006 at 09:25 AM. Reason: PST not GST... oops
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  4. #3
    bikes and boards Array stef's Avatar
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    Quote Originally Posted by CrashTested
    Welcome to BCSB damn you newbies with your double posting! You have to pay GST on the declared value/what you paid when you register it.
    wow, that was a fast response. Sorry about the double posting

  5. #4
    You go squish now! Array mli35's Avatar
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    I believe that when you're buying privately and when the vehicle changes ownership the only tax that needs to be paid is the 7% PST on the sale (I dunno why because the vehicle is used), GST is exempt since it is a private sale this much I know.

    However if you were to be able to get the person to sign on a ICBC form declaring it as a gift to you then you could also skip the PST.
    A bad day of riding is, still better than a good day of work.

  6. #5
    Registered User Array SilverSV650S's Avatar
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    I believe mli35 is correct, it is the PST that you have to pay, not the GST.

  7. #6
    bikes and boards Array stef's Avatar
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    Thank you all !!! That's what I thought. I just wanted to make sure.

  8. #7
    Registered User Array ApatheticEnd's Avatar
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    Have the seller write up the change of ownership to read a lower value than what you paid. This is a good way to keep a few more bucks in your pocket but don't get rediculous. If you paid say $6000 have him write it up as $4500. If ICBC feels the declared value is way too low they might research it and make you pay the tax on the market value so don't get carried away.

    Enjoy your bike but be safe. Wear good, purpose built gear, and get some training if you haven't ridden before.

    cheers

  9. #8
    Fuelled by rice Array racerboy88's Avatar
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    Quote Originally Posted by ApatheticEnd
    Have the seller write up the change of ownership to read a lower value than what you paid. This is a good way to keep a few more bucks in your pocket but don't get rediculous. If you paid say $6000 have him write it up as $4500. If ICBC feels the declared value is way too low they might research it and make you pay the tax on the market value so don't get carried away.

    Enjoy your bike but be safe. Wear good, purpose built gear, and get some training if you haven't ridden before.

    cheers
    That's what we did when we sold a car to a friend. Sold for $5000 told auto plan sold for $3000. If there were to be any questions, we would just say we had to sell it b/c we bought another car already and needed the cash.
    02 R1- stolen Nov 24/02

    Hang Thieves

  10. #9
    Chancellor of Horsepower Array
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    It is always interesting to see the maliable morality of people on this board. It is facsinating to discover the ease with which people steal from all of us by committing tax fraud and yet purport to hate thieves.

  11. #10
    Dont be a dick Array Driftland's Avatar
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    HPMAN, your pretty much right although in reality it only really applies to income tax. I hate it when people dont claim things on their income tax, if i have to pay and everyone else has to pay it then why doesnt the guy down the street have to pay it. Haha it even says in the income tax act that you have to claim cash earned from illegal proceeds.

    But in this case, charging tax on something which someone has allready paid tax on is just double taxation. And Canadian income tax does take alot of steps to reduce double taxing people like making dividends to corporations non taxable. So i have no complaints when people like ApatheticEnd try to keep a little more cash in their pocket, specially when people are buying a bike as 9 times out of 10 that extra cash is going towards better equipment.

    But otherwise i agree with you, damn tax evading pot growers

    ^_______^

  12. #11
    Registered User Array sprinter 27's Avatar
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    fwiw if you pay 6000,and claim you paid 3000.and then use private insurance,you will be paid the 3000 or less if you were to make a claim.

  13. #12
    banned user Array adam112's Avatar
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    Quote Originally Posted by HPMan
    It is always interesting to see the maliable morality of people on this board. It is facsinating to discover the ease with which people steal from all of us by committing tax fraud and yet purport to hate thieves.
    hahaha dude get over it. Screw the taxes. They should only get one shot at my cash, and thats my income tax. Screw the PST/GST and any other taxes. Double and triple taxation is theft my friend, period. Count me in as a guilty tax evader!!

    The only difference between the gov't taking my shit and a thief taking my shit is that we have told the gov't that they dont have to hide in the dark and break my door locks to get it.
    Last edited by adam112; 01-04-2006 at 09:18 AM.

  14. #13
    cbvroom
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    Quote Originally Posted by sprinter 27
    fwiw if you pay 6000,and claim you paid 3000.and then use private insurance,you will be paid the 3000 or less if you were to make a claim.
    Are you sure, because the bike could some scratched up non running POS that you fixed up all cherry and is obviously worth more now. It's what you say the declared value is that they will pay out. I agree paying tax because a vehicle changes ownerships is BS. It's like picking up a case of beer for a friend then when he pays you back he's gotta pay the taxes on it.

  15. #14
    Registered User Array savagebovine's Avatar
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    well, i guess i agree with hpman. Although, whether or not somebody is skimping out on a few dollars in taxes is not something i really care about as far as our economy goes, it does however say something about a person if they make the effort to be honest rather than take the easy way out to save those few bucks.

  16. #15
    Chancellor of Horsepower Array
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    Quote Originally Posted by adam112
    hahaha dude get over it. Screw the taxes. They should only get one shot at my cash, and thats my income tax. Screw the PST/GST and any other taxes. Double and triple taxation is theft my friend, period. Count me in as a guilty tax evader!!

    The only difference between the gov't taking my shit and a thief taking my shit is that we have told the gov't that they dont have to hide in the dark and break my door locks to get it.
    You are entitled to your own opinion. However, it is interesting to see how many (not all) people have no problem stealing from the taxpayers (i.e. tax evasion), but have a great problem with having their bikes stolen. Both are a crime and against the law. It is odd how certain people "choose" not to obey the laws that require them to pay taxes, but are outraged when other people "choose" not to obey laws that prohibit them from taking other people's property.

    And for your information, if consumption taxes (i.e. SST / GST) were eliminated, the rates of income tax would necessarily be increased. At least with consumption taxes each individual chooses to pay the tax (i.e. if you don't purchase a taxable product or service, you don't pay the tax). However, most tax policy commentatory view consumption taxes as highly regressive (but I won't bore you with tax policy theory).

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