Should sales tax be paid?

Ask the Hackrs
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Hi Guys, curious to see if anyone here has been in this situation. I bought a car 4 months ago in california, i live in Las vegas. I bought the car in cash, however sales tax was not included in the deal since i was planning to pay it once i register the car in nevada. However i still have not registered it with DMV since my appointment isnt till next month, yes nevada dmv is so delayed.
So lately i have been thinking of selling my current car since carvana is offering me more than what i bought it for. My question is, am i allowed to sell my car if i havent paid the sales tax on it yet or will i still be responsible for it even after i sell the car?

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Don’t know NV law on this. If you lived in CA, you’d owe tax there as you would have had/owned it for more than 10 days.

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Still owe taxes. Also owe taxes if your profit. Not a lawyer. Welcome to USA.

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I wouldn’t listen to my lawer for tax advice either :wink:

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It’s pretty cut and dry that if you make a net profit on the deal, capital gains is technically due (which isn’t to be confused with having positive equity in a deal that’s still less than your total lease outlay, which isn’t as cut and dry)

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I think you missed the tongue in cheek humor…tax advice should come from your accountant, generally speaking.

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If he didn’t pay tax, he probably doesn’t have a Title in his name either.
aka Carvana won’t take it without a Title right?

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So if you find a $20 in the parking lot and cant find the owner do you pay taxes on your gain ?

Or is it just finders keepers !

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I actually did find $20 once, and did not pay any taxes. Good thing the statute of limitations has expired.

For the OP, he would have a taxable short term capital gain if his sales proceeds exceed his total purchase price.

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I actually do have the Title.
Im not trying to avoid paying the taxes, if i dont have to then great, if i do then so be it lol.
Will probably call carvana and see what they say about this situation.

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In your name? As in printed on the title? Or did the previous owner transfer it over.

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This is the important part. If memory serves, carvana won’t buy it if the title isn’t in your name.

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Yes, the Title is under my name. So i guess i shouldnt have any problems selling it to carvana then

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How did you get the title under your name without paying taxes? You can’t do that in FL.

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Yupp i got it. Not really sure if its required to pay the taxes first before you can get the title im sure i do have to pay it once i register the car since DMV will look at my contract.

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Very Interesting because in CA you get the new title When you turn in the old one and pay those ‘taxes’.

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Really? Hmm interesting. Yeah because the title is of state of california, and has my name and nevada address. So not really sure if im “off the hook” on paying taxes.

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In CA tax is not due as you’re not registering the car there and drove it out of state immediately.

In NV the tax is due when you register the car.

If the NV DMV is so backed up that they cannot register the car and/or collect the tax till 5+ months after you buy it, then that is not your problem.

The key here is that you already have the title in your name. I don’t think Carvana cares whether it’s a CA or NV title.

I would certainly try to go through with the sale now, all signs point to you not being on the hook for the tax as long as you can complete the sale before you were to register it.

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