Anyone dealt with Tax dept looking into a car purchase?

[smokin5s]

a few months back, I purchased a car for cheap... it didn't run right, etc... I paid $700 for it (since put in another 3k+ to get it running right). We didn't lie on the title, but he contacted me the other day saying he got a form from the tax dept. I paid cash for the car. What should I expect? Will I get a form as well from the tax dept? Will they even reach out to me?

 

I'm just looking to understand since I've never dealt with the tax dept questioning a purchase.

[Coaster]

As I understand it as long as he told the tax dept the same number that was on the title when it was transferred you're fine and they will probably never contact you.

[Furloaf]

I find it weird that he would get the form, since it's the buyer that pays sales tax. Maybe he claimed it on it on his taxes, for some deduction? I guess they're likely just cross-checking.

 

I wouldn't do anything unless you get something addressed to yourself.

[smokin5s]

that's pretty much what I figured. I just don't want to have to go into legal shit with the tax dept for a car that I was actually honest about what I paid because it was cheap.

 

it's a 2008 and a nice car, the previous owner through the transmission was shot plus knew of other expensive fixes needed... that's why I got it so cheap. He said he had probably 40 people test drive it before me which worked to my advantage to get the price down.

[smokin5s]

I find it weird that he would get the form, since it's the buyer that pays sales tax. Maybe he claimed it on it on his taxes, for some deduction? I guess they're likely just cross-checking.

 

I wouldn't do anything unless you get something addressed to yourself.

I bought the car a month ago... he wouldn't have had a chance to do anything else with it yet.

[Furloaf]

If you have any mechanic's or parts receipts you may want to hold onto them. They'll show you bought a clunker for cheap.

[smokin5s]

no mechanic's fees as I did the work, but I have tons of parts reciepts

[Turbs3000]

They will just be looking for him to verify the sales price. They have a book value on every car and when they see a 5k car transfer for $700 it'll run a higher probability of being flagged and reviewed.

 

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[Mensan]

Get a notarized bill of sale to protect both of you. The tax dept. may ask for it. note on the bill of sale the car was non-op and it will help you a lot.

[STEVE-O]

What he got was a letter from the Bmv needing him to verify the sales price of the vehicle. It's just like the random flagging of plates to verify insurance. Nothing to worry about. I have only ever got 1 letter from them. No need for bill of sale or anything else as long as you laid the tax when you transferred the title your good. In Ohio we don't pay tax on a book value or market like other states do so as long as he states what was written on the title your good to go

[smokin5s]

What he got was a letter from the Bmv needing him to verify the sales price of the vehicle. It's just like the random flagging of plates to verify insurance. Nothing to worry about. I have only ever got 1 letter from them. No need for bill of sale or anything else as long as you laid the tax when you transferred the title your good. In Ohio we don't pay tax on a book value or market like other states do so as long as he states what was written on the title your good to go

it's from the Ohio Dept of Taxation, not the BMV. And yes, I paid the taxes on the vehicle when I transferred the title.

 

I think a bill of sales would be a bit late at this point considering that I purchased the vehicle a month ago. Making a bill of sales after the fact doesn't really prove much of anything.

[nurkvinny]

Haha, those letters. You'll likely get one too. Don't lose any sleep over it. I even had a sale where the buyer and I put down a number $1000 apart from each other. Nothing happened.

[MattKatz]

If for some reason you didnt put on the title what you paid....as long as the seller does (i.e. you told him I put xxx on title) and he follows through with that...youre golden. Vehicles are less likely to have this happen, but back a few years ago when I was flipping bikes, I would get one almost every sale.....I just made sure to keep track of the "Agreed" price on each sale.

[smokin5s]

I spoke with the seller and I paid 700 so it should be pretty cut and dry. Hell, I even have the withdrawl slip from the bank where it shows I withdrawled 700 cash on the same date as purchase. I don't really know what else they'd want.

[Richard Cranium]

I've gotten one of those letters too. I bought a truck, then sold it, then he sold it and the stated value yoyo'd quite a bit for those 3 sales of the same vehicle. We both got the letter. we stuck to our stated values and didn't hear anything else about it.