Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert,
Get an Answer ASAP!

Tax

We bought a vehicle from dealer in California for exporting ...

Customer Question
We bought a vehicle from...
We bought a vehicle from dealer in California for exporting to Russia. Vehicle was purchased for $43000. While we were waiting for pink slip to come for 3 months, we decided to sell it to a friend for $11000. Due to a dept that we owed to my friend, in return we sold the vehicle for $11000 to cover the difference. However the car will still be going out of the country. Now the DMW does not provide the pink slip basing on the fact that Tax should be paid on $43000. I have to questions 1) Does the second owner has to pay the Tax if he still going to send it out of country? 2) If he still needs to pay the Tax, does he still need to pay for $43000 or for $11000. Thank you very much
Submitted: 9 years ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 35 minutes by:
7/3/2008
Tax Professional: Marvin,EA, Enrolled Agent replied 9 years ago
Marvin,EA
Marvin,EA, Enrolled Agent
Category: Tax
Satisfied Customers: 1,672
Experience: Enrolled to Represent Taxpayers Before The IRS
Verified
Hello and thank you for using Just Answer. When you first bought the vehicle for $43,000 sale tax was due on the purchases and should have been paid the tax to the dealer. Selling the vehicle to your friend is a new transaction and sale tax is due on the $11,000 in CA. Sending the vehicle out of the country does not void the sales in CA. Sale tax is due on the purchase of the vehicle.
Ask Your Own Tax Question
Customer reply replied 9 years ago
Marvyn when someone purchases vehicle and ships it out of country does not pay the Tax. When we bought the vehicle we did not pay Tax to the dealer because we were going to ship it of country. Now since we sold it to our friend, DMV is asking us to pay Tax on $43000 but the car still going out of the country. My question was if we still have to pay the Tax and if yes, is it correct for DMV to ask Tax on $43000
Customer reply replied 9 years ago
Marvin I just want to know if you still ?
Tax Professional: Marvin,EA, Enrolled Agent replied 9 years ago

When you sold the vehicle to your friend the vehicle was in the country. This would make the transaction a resale of the vehicle and taxes should have been paid on the first transaction. DMV is looking for sale taxes to be paid on all vehicle transaction and your friend will have to pay sale tax on the $11,000 to the DMV.

Marvin,EA
Marvin,EA, Enrolled Agent
Category: Tax
Satisfied Customers: 1,672
Experience: Enrolled to Represent Taxpayers Before The IRS
Verified
Marvin,EA and 87 other Tax Specialists are ready to help you
Ask your own question now
Ask Marvin,EA Your Own Question
Marvin,EA
Marvin,EA
Marvin,EA, Enrolled Agent
Category: Tax
Satisfied Customers: 1,672
1,672 Satisfied Customers
Experience: Enrolled to Represent Taxpayers Before The IRS

Marvin,EA is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,300 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,310 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

Robin D.

Robin D.

Senior Tax Advisor 4

13,695 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,651 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

R. Klein, EA

R. Klein, EA

Enrolled Agent

1,839 satisfied customers

Over 20 Years experience

< Previous | Next >

Related Tax Questions
Is there a retail inventory tax for the state of California?
Is there a retail inventory tax for the state of California and how does it differ from other states? Is it just a federal tax or is there no tax?… read more
DanielleCPA
DanielleCPA
Certified Public Accountant
Bachelor's Degree
76 satisfied customers
US taxation and sales tax issueI started ebay business with
Second opinion] US taxation and sales tax issueI started ebay business with a Korean relative. We don't have a partnership agreement. The partner has an paypal and ebay account, gets a sales order, an… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Second opinion] do I pay sales tax for items bought from
Second opinion] do I pay sales tax for items bought from Iowa … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
US taxation and sales tax issue I started ebay business with
US taxation and sales tax issueI started ebay business with a Korean relative. We don't have a partnership agreement. The partner has an paypal and ebay account, gets a sales order, and let me dropshi… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,458 satisfied customers
For a California trust's final return there will be unused
For Barbara: For a California trust's final return there will be unused capital losses left over. All the beneficiaries are California resident individuals. The trust is administering a decedent's est… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
2 Questions: SALES TAX COLLECTED and GROUPON SALES Does
2 Questions: SALES TAX COLLECTED and GROUPON SALESDoes Sales tax get reported on the Corporate Tax Return (1120) as part of Gross Receipts or Sales?I just got an IRS bill because I did not include Sal… read more
abci168
abci168
Principal
27 satisfied customers
How to report the sale of a property outside US? How to
How to report the sale of a property outside US? How to claim the taxes paid abroad on the profit made by selling property overseas?… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Were to report gain on sale of residence used partly for
Were to report gain on sale of residence used partly for business? … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
California tax residency question. I live in Texas with
California tax residency question. I live in Texas with family and am starting a job in California next week. I will commute to California till next summer and we will move then. In Feb, I need to sho… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,695 satisfied customers
Will try to apply for a sales and use tax certificate for a
Will try to apply for a sales and use tax certificate for a new dot.com business S corp or LLC not sure yet? Question is how do I avoid being denied the sales and use tax certificate due to the reason… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I have a California Use Tax question. I purchased an general
I purchased an general aviation aircraft in Florida in February. I recently received a California BOE request for Use Tax (where I enter the amount paid and the resulting tax amount.) … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I need to file my sales and use tax for the second time for
HI, I need to file my sales and use tax for the second time for my online retail business; however, this time I have some invoices and numbers to add to it. All my purchases from my suppliers were tax… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,458 satisfied customers
Do I need to pay a sales tax on a used park trailer in
Do I need to pay a sales tax on a used park trailer in sandwich ma that I purchased from another owner … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Lev, where in the california return form 100s one report the
Good evening Lev, where in the california return form 100s one report the tax withholding from 1099k. Does this tax withholding flows through personal tax return or applies towards 100s estimated paym… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
If person A sales a used car to person, is a sales tax
If person A sales a used car to person B, is a sales tax required to be paid by either party? … read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,217 satisfied customers
I have a real estate sales question in California,
the question is about avoiding capital gains if I sell … read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,217 satisfied customers
Tax question-California return Which line do you find the
Tax question-California returnWhich line do you find the AGI in California nonresident tax return Form 540NR for year 2015… read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
723 satisfied customers
California tax return: Taxpayer who is not a resident o
California tax return:Taxpayer who is not a resident o California. He receive a Federal K-1 and California K-1 from the same partnership. The business is not located in California and the service is n… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,458 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x