Avoiding Tax on New Tractor??

[LarryRB]

A UCC filing is automatically sent to the AG's office and in some states, such as CT, a copy sent to the county, then town.. The MAss dpt of revenue (DOES) check with the AG and does, get all new UCC filings, so to avoid this is asking for more trouble than it is worth to save 1300 or so.

 

[LarryRB]

A UCC filing is automatically sent to the AG's office and in some states, such as CT, a copy sent to the county, then town.. The MAss dpt of revenue (DOES) check with the AG and does, get all new UCC filings, so to avoid this is asking for more trouble than it is worth to save 1300 or so.

 

[MadReferee]

</font><font color="blue" class="small">( so to avoid this is asking for more trouble than it is worth to save 1300 or so. )</font>

Avoidance is easy, buy here in NH and pay cash. You get the best of both worlds, no sales tax and no monthly payments /forums/images/graemlins/grin.gif /forums/images/graemlins/grin.gif /forums/images/graemlins/grin.gif

 

[MadReferee]

</font><font color="blue" class="small">( so to avoid this is asking for more trouble than it is worth to save 1300 or so. )</font>

Avoidance is easy, buy here in NH and pay cash. You get the best of both worlds, no sales tax and no monthly payments /forums/images/graemlins/grin.gif /forums/images/graemlins/grin.gif /forums/images/graemlins/grin.gif

 

[LarryRB]

very true,
however, very few people can afford to pay cash for a tractor., Or at least the people I know... If this guy pays cash, he wins, simple

 

[LarryRB]

very true,
however, very few people can afford to pay cash for a tractor., Or at least the people I know... If this guy pays cash, he wins, simple

 

[sleepy_sleeper]

I just Bought a 5103 and LX6 cutterand avioded sales tax beacause I have 2 geldings and "plan" and getting a mare to breed clydesdales

 

[tf116]

what if you borrow money from a bank and send a check?.....and tractor is delivered to home in WV?......
If I had a tax exempling number I wouldn't have to even worry about it..and the tractor is going to be used in farming (hobby farm)....disabled so, I can't get exempipion?....
From that viewpoint, I don't really feel bad about paying tax....Mike

 

[tf116]

see above message and change to don't feel bad about not paying taxes....Mike

 

[Matt400]

California's laws are crystal clear. If you go to a neighboring state and buy a tractor, you do not owe the neighboring state's tax (in most cases), but you do owe California Use Tax.

Makes no sense when you think about it, sales tax.. tax on the sale, so why should for example CA be entitled to tax on a sale made by an Oregon dealer?
It wasn't a CA's sale. I might want to buy out of state but more because of a dealer willing to deal. The result leaves a bad taste that CA gets taxes from a sale never made there while I take time off work and travel expenses.

 

[jda1961]

i don't think there is sales tax in tennessee, best thing to do is find a nearly new tractor for sale from an individual and buy it, no sales tax that way

 

[GPintheMitten]

Makes no sense when you think about it, sales tax.. tax on the sale, so why should for example CA be entitled to tax on a sale made by an Oregon dealer?
It wasn't a CA's sale. I might want to buy out of state but more because of a dealer willing to deal. The result leaves a bad taste that CA gets taxes from a sale never made there while I take time off work and travel expenses.

States don't impose sales tax because it costs the state for a sale. It's just to get revenue to support what the state government does. So don't try to make sense of it. You have travel expenses because you traveled. You took off work because you wanted to. Neither have anything to do with paying sales tax.

 

[jda1961]

States don't impose sales tax because it costs the state for a sale. It's just to get revenue to support what the state government does. So don't try to make sense of it. You have travel expenses because you traveled. You took off work because you wanted to. Neither have anything to do with paying sales tax.

umm what?

 

[Matt400]

You have travel expenses because you traveled. You took off work because you wanted to. Neither have anything to do with paying sales tax.

True and the state that made the sale should get the tax IMO.

Suppose I break down while traveling on vacation and have to buy a 3500 dollar transmission. I am suppose to pay the bill and report to my state when I get home or at the end of year that I didn't pay them tax on my repair is just crazy.

 

[GPintheMitten]

True and the state that made the sale should get the tax IMO.

Suppose I break down while traveling on vacation and have to buy a 3500 dollar transmission. I am suppose to pay the bill and report to my state when I get home or at the end of year that I didn't pay them tax on my repair is just crazy.

I agree. I doubt that you would owe sales tax in that situation. You paid what was required when you got the repair done.

But that is different than taking specific action to try to avoid tax in the home state.

 

[BXpanded]

As I understand the law in North Carolina and several other states...
If you buy something from a North Carolina merchant and pick it up here in NC, the merchant is required to collect and remit sales tax. It does not matter where you live nor where you plan take the item.

If you purchase the item from a Tennessee merchant for instance, and have it delivered by the merchant to, North Carolina, the merchant is technically doing business in NC and is required to collect and remit NC sales tax.

If you purchased the item from the TN merchant by mail, internet, phone, etc., and had the item delivered to NC by a 3rd party such as UPS or Yellow Freight, the merchant is not required to collect tax. However, this case requires you to self report this purchase and pay the NC sales tax. Granted, almost never done but it's the law...

If you buy an item from an individual, he is required to collect and remit the sales tax or you are responsible for reporting and paying. Again, the law...

There is a line on the NC state tax return for owed sales taxes on out of state purchases, purchases from individuals or any other case where the state did not get their cut.

If anyone collects taxes and doesn't remit them to the state, the state gets really upset!

 

[crbr]

i don't think there is sales tax in tennessee, best thing to do is find a nearly new tractor for sale from an individual and buy it, no sales tax that way

Yes there is a sales tax in TN (9.25% per dollar). We have Democrats....

In TN if the tractor is for commercial farming (large or small) then a form can be filed with the seller (which goes to the IRS to exclude the seller's liability for the tax) exempting the sales tax. The buyer should be able to provide (to the IRS) reason for the exemption such as owning a commercial operation (and filing tax papers as such). Otherwise, it's like any other commodity in TN.

 

[archerm3]

True and the state that made the sale should get the tax IMO.

Suppose I break down while traveling on vacation and have to buy a 3500 dollar transmission. I am suppose to pay the bill and report to my state when I get home or at the end of year that I didn't pay them tax on my repair is just crazy.

Well, if you do that most states will forgive that amount of tax that you did pay to the other state. If your state's tax rate is higher than where you made the purchase and paid their sales tax, you owe the difference in tax to you own state.

It's not crazy, it's fair. Everybody pays sales tax. Support your local business who is losing your business when you buy out of state, but that local business is helping to fund your schools, your fire department, your police services, your state's (F) EMA resources, your governor's salary...etc.

Only thing I can say, is as a fine and upstanding citizen, if you don't like your state's laws, have them changed or move to a different state.

 

[Ken]

Used to live and work in Arizona. !st year in state no tax on income. purchased a Ford car. no tax.
Job change to Arkansas. income tax and New price on LTD Ford for previous year.before could change license. The state is hungry.
On tractor purchase. Read IRS Pub. on line or in book. PUB.225 and PUB.925.
The 1040 line 37 and continue through the maze. then form 8582 then go to 6198 might be able to get a prorated deduction either straight line or 7 years.
I chose the 7 years.
Last year income tax Fed. and State the person figuring the tax in the office of the group that advertises the greater amount of deduction. Missed 1600 in allowances and had to return twice to get corrections . Asked her if she had ever been audited said no told her when she is they will start at top for her brand of shampoo and go to the color of her toe nails. before finishing.
I'm not with any agency just study the forms after some one else does the figuring.
if it looks like a tax. smells like a tax. some goverment bean counter has got it covered.
ken

 

[bp fick]

Buy a tractor with 30 hours on it, from a private party sale.

Save a grand in sales tax.