Sales Tax form - flip the car

Ask the Hackrs
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1

Hi everyone,

I recently bought a car under my business name (LLC), and I was wondering if I flip the car, can I be exempt from the sales tax?

I read somewhere in the forum that there is a form you have to fill out if you want to flip the car but I can’t find it. I might be mistaken but I’m just asking for my knowledge.

If I have to pay the sales tax, can I get back my money for the sales tax? I don’t make profit on this car and for some personal issues I have to sell the car. I already paid the tax. (California)

It’s been bought two weeks ago and there is no miles on the car.

2

I think you might be thinking of the form when you’re buying out a lease and resell it within 10 days. No real way to get tax back in CA if you purchased it.

https://www.dmv.ca.gov/portal/handbook/vehicle-industry-registration-procedures-manual-2/transfers/leased-vehicles/

3

Thanks for bringing it up. How about when I pay my LLC tax in April? Can I make the sales tax back? I am losing money honestly and this is because of personal issue I have right now. I was thinking if I get back my tax sale, it would cover my loss.

So you’re basically saying there is no way to not paying the tax if you want to flip the car for profit?

4

1- Consult your tax attorney for those type of questions.
2- How is it a flip if you can’t even break even after taxes? A flip should have way more equity than just the tax savings otherwise it ain’t a flip, just a waste of your time.

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