OblivionLord
fast rider
The conditions of tax for tangible items sold in the private sector varies by state. I'm in Florida which technically all sales are taxed regardless of the item. However..... in the private sector, especially involving the marketplace regardless the state, I would say that the vast majority of sales are not reported or are fraudulently conducted by either falsely writing an amount on the title at a value less than the actual price sold or writing it off as a gift even though it was sold. This is technically tax fraud but the IRS isn't going to go out of their way to investigate these 'small' transactions unless its a an item of substantial value or you run a business and not report the sales.
That is quite the reason why I said you don't have to worry about tax.
HOWEVER!!! If you are to follow the law to the T depending on your state involving a private sale of a used vehicle and will report the amount agreed at the time of sale then it will ALWAYS be taxed LESS overall than any dealership simply because the taxable amount that you pay for with a private sale is simply the amount stated on the title which is just the item itself. Dealerships on the other hand are in the business to make money and they WILL ALWAYS include extras such as non-tangible fees which all get taxed on top of the price of the vehicle resulting in a higher overall taxable amount compared to the taxable amount of the same item with a private sale.
This is why it's always better to purchase a used vehicle with a private owner over the dealer.
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