RUTAN TA1647545492 Posted July 19, 2012 Report Share Posted July 19, 2012 I took over payments from a guy when I bought my bike and when it was paid off it was signed over to me as a gift bc i already paid for it. The IRS is auditing me now. Any tips on how to fix this? Quote Link to comment Share on other sites More sharing options...
Trouble Maker Posted July 19, 2012 Report Share Posted July 19, 2012 Basically you paid him the payment amount X the number of payments, so it wasn't a gift. You owe taxes on that amount. http://i2.kym-cdn.com/entries/icons/square/000/001/231/yougonget.jpg Quote Link to comment Share on other sites More sharing options...
KillJoy Posted July 19, 2012 Report Share Posted July 19, 2012 Basically you paid him the payment amount X the number of payments, so it wasn't a gift. You owe taxes on that amount. http://i2.kym-cdn.com/entries/icons/square/000/001/231/yougonget.jpg That is what I was thinking. But, I am no tax person... KillJoy Quote Link to comment Share on other sites More sharing options...
Trouble Maker Posted July 19, 2012 Report Share Posted July 19, 2012 That is what I was thinking. But, I am no tax person... KillJoy I'm not a tax person, I'm a common sense person and this is just common sense. Quote Link to comment Share on other sites More sharing options...
RUTAN TA1647545492 Posted July 19, 2012 Author Report Share Posted July 19, 2012 But I technically paid the sales tax on it already when I took over payments. Oh well, I'll just call my lawyer today and let him handle it. Quote Link to comment Share on other sites More sharing options...
Ryan218 Posted July 19, 2012 Report Share Posted July 19, 2012 But I technically paid the sales tax on it already when I took over payments. Oh well, I'll just call my lawyer today and let him handle it. the previous owner would of been the one that paid the sales tax when he bought it. you took over payments. so you havnt paid sales tax. you just made his payment to pay it off. now as the new owner you are responsible for the sales tax on bikes value. state didnt get there cut on you taking over his payments. so now they want there cut. Quote Link to comment Share on other sites More sharing options...
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