The DMV is so insidious. They are allowed to tax used property sales.

Discussion in 'General Motoring' started by LovingPerson, Feb 24, 2004.

  1. So if you underpay the tax, can you claim last year's payment as a
    deduction to this year's income?
     
    Matthew Russotto, Feb 25, 2004
    #21
  2. LovingPerson

    Tony P. Guest

    I deliberately left income tax out of the equation to keep the cost
    purely related to the car itself.
     
    Tony P., Feb 25, 2004
    #22
  3. LovingPerson

    LovingPerson Guest


    I am all for Oregon. Oregon is a great state, it sounds like.
    It deserves to have the job creation. That is how it is supposed to
    work. Make things easier for the businesses to survive and do it
    transactions and get rewarded. Cudos for OR!

    sincerely. Signed: Libertarian at heart--though he lives in a
    democrat world.
     
    LovingPerson, Feb 25, 2004
    #23
  4. LovingPerson

    Steve Barker Guest

    dunno. I've never underpaid. Been getting a state and federal refund every
    year for 31 years now.
     
    Steve Barker, Feb 25, 2004
    #24
  5. LovingPerson

    Not Me Guest

    "The Lindbergh Baby"


    | Now if you only knew how the REST of the government screws you even
    | worse! ;-) ;-)

    Just be thankful we're not getting all the government we're paying for <g>
     
    Not Me, Feb 25, 2004
    #25
  6. LovingPerson

    chuck smoko Guest

    Steve,
    Unfortunately that is not the case, last year's state refund seems
    like it is taxed by your state as state tax can be deducted from
    your federal taxes, but not your state taxes. To get around this,
    states the refund back into your income (or subtract any payment
    from it). It is just a year behind.

    chuck
     
    chuck smoko, Feb 26, 2004
    #26
  7. LovingPerson

    chuck smoko Guest

    typo in my follow up. I meant to say "states add the refund
    back into your income." in the next to the last line. duh!
     
    chuck smoko, Feb 26, 2004
    #27
  8. LovingPerson

    Steve Barker Guest

    And as I stated in my email, you are wrong. It doesn't "SEEM" anything. We
    have to claim last years refund as this years income on the state return.
    Just as stated before. There also is no deduction from the federal return
    for the state tax.

    sorry.
     
    Steve Barker, Feb 26, 2004
    #28
  9. LovingPerson

    Tony P. Guest


    The main argument is that government could be much smaller than it
    actually is. But you'll never see the end of the political hacks so
    government will never get smaller.

    Same is also true for law enforcement - we have more of it now than ever
    thanks to the war on drugs. But it's a war we can never win, hell, every
    cop I've met knows this.

    But they can't dismantle the infrastructure already there easily because
    of unions.

    It's one unending cycle.
     
    Tony P., Feb 26, 2004
    #29
  10. LovingPerson

    Napalm Heart Guest

     
    Napalm Heart, Feb 26, 2004
    #30
  11. LovingPerson

    chuck smoko Guest

    Steve,
    If that were the case, then you can have your employer withhold
    less of your earnings which goes towards your state income tax.
    That way you would not get a much of a refund or perhaps you
    will have to pay some when you file your state taxes as maybe
    not enough was withheld. But, you would not be taxed twice.
    Right?

    It does not make sense that you can effectively adjust your
    taxes by adjusting your withholdings.

    In Virginia, we take the federal gross income and carry it to
    the state form. Then we then take last years state refund,
    social security and some other incomes and SUBTRACT them
    all from the federal gross income giving the Virginia adjusted
    income.

    I am not trying to argue, I think that you seeing that
    last years state refund is used in the state adjusted in-
    come calculation. The question is what is going on in
    Kansas' calculation?

    Here in Virginia we had a court case that went as follows if
    I recall. State employees paid into a retirement fund using
    money that was not tax deductible. Then when the funds were
    drawn on after retirement, the entire payment was taxed.
    That is double taxation and the state lost the court case.
    They have been dragging their feet in paying as it was over
    many years and was big $$. Don't recall if the retirees ever
    got their money.

    chuck

    PS: Please take a look at federal schedule A, line 5. State taxes
    and local income taxes are a federal deduction when you itemize..
    I have the forms in front of me.
     
    chuck smoko, Feb 26, 2004
    #31
  12. Poor planning, eh? :)


    Matt
     
    Matthew S. Whiting, Feb 26, 2004
    #32
  13. LovingPerson

    Steve Barker Guest

    Nothing going on. Just adding the refund from last year to the income.

    We don't itemize. Please see line 10 on form 1040.

    I did however dig back into this and found you are partially correct. And
    _I_ had it backwards. We have to ADD the state refund into the adjusted
    gross on the Federal, (line 10 form 1040) AND we deduct it from the adjusted
    gross on the state form (K-40 line 2)
     
    Steve Barker, Feb 26, 2004
    #33

  14. If you itemize deductions on your 1040, then you can claim state taxes
    as a deduction.

    Matt
     
    Matthew S. Whiting, Feb 26, 2004
    #34
  15. I'm afraid you're confused here, Ted. If you buy a ready-to-eat hamburger in
    Washington, you are required to pay Washington's sales tax (in this case, it's
    actually the meals tax), whether your domicile is Oregon, Ontario, or China.

    However, if you buy something in Wasington for *delivery* elsewhere, than
    Washington does not charge you the tax. Since that hamburger isn't delivered
    out of the state, you ow them the tax on it.

    A washing machine delivered to Oregon or a car registered in Oregon are examples
    of goods bought for delivery elsewhere. Because of the registration factor,
    cars are one of the few items you can deliver to the state yourself instead of
    having it shipped.
    True. Except the tax due to Washington isn't "sales" tax, as the sale didn't
    take place in Washington. Nor can Washington tax the goods imported from
    another state because of the Constitution's interstate commerce clause (except
    alcohol due to the 21st amendment). What Washington CAN due is require you to
    pay "use" tax on the goods. I believe every state with a sales tax also has an
    equivalent "use" tax. In practice, it's nearly impossible for them to do this
    because it is so hard to enforce. However, states are starting to require
    taxpayers to declare use tax on their state income forms, so if you lie about it
    you are committing perjury, which would be another offense if they find a way to
    catch use tax evasion in the future. (States are getting aggressive with taxing
    mail order cigarette sales too).
     
    Wendy Marshall, Feb 26, 2004
    #35
  16. DMVs don't make laws or tax policy, they just enforce them. The tax goes
    to the state treasury. Can't blame the DMV for this one, your legislature
    makes the decisions.
     
    Wendy Marshall, Feb 26, 2004
    #36
  17. Many states exempt occasional yard sales from sales tax requirements. They're
    not just making a nice gesture, it would also be time/cost consuming for them
    to enforce this for very little tax revenue.
     
    Wendy Marshall, Feb 26, 2004
    #37
  18. The only "income" from selling a car would have to be figured by subtracting
    the amount you originally paid for the car (the tax basis). Since it's
    unusual these days to sell a car for more than you pay for it, it's not
    common to get income from selling a car. However, I don't know any states
    that permit you to take a loss for a (non collectible) car either.
     
    Wendy Marshall, Feb 26, 2004
    #38
  19. LovingPerson

    DTJ Guest

    Sorry you are an idiot. I sure hope you pay someone to do your taxes,
    maybe a five year old.
     
    DTJ, Feb 26, 2004
    #39
  20. LovingPerson

    DTJ Guest

    Further, if you don't itemize, you get the standard deduction, which
    is far higher than most people are actually entitled to.
     
    DTJ, Feb 26, 2004
    #40
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