Quote:
Originally Posted by flyer333
Hey guys,
Do you guys know if you have to pay HST if it's just a private sale?
Thanks.
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You don't pay taxes to the person selling, you are going to have to pay taxes when you register with vehicle with MTO.
Way around this:
You pay taxes on the sale price or blackbook value of the car (whichever is higher).
BUT there is a form you can pick up at the MTO office that lets you get the car appraised and you pay taxes on the appraisal value of the car and not the sale price or blackbook value.
Here is what you can do:
1) Get the form from the DMV (its called appraisal form for used car sale)
2) If you know someone in the mechanic/appraisal business get them to write the appraisal value for around $5000 (make it a reasonable number. Don't get the appraisal made out for $20 thats ridiculous I'm sure you get my point)
3) On the form there is a section to list damaged parts so list:
-Water damage to engine
-turbo's need replacing
-wiring harness needs replacing
-SOLD AS IS
Make it believable. If your going to state water damage to engine, be consistent with the stuff that would need to be replaced in the event your car has water damage to the engine.
4) When you take the Bill of Sale and Title to the MTO office to register the car, hand them the appraisal and you pay the tax on the $5000 not the blackbook or sale price.
(I am assuming you are buying a BMW for $20,000 or more. Obviously if your buying a winter beater you picked up for a couple grand make the appraisal out for $300-400)