taxes and new sleds

[POLARISDAN]

thought flipping every year would be the answer the the poo problems..but just paid a grand in taxes and wonder if anybody out here flips every year and what kind of a hit you take..i do at least 3k a year..so after 2 im at 6K and then at risk of the issues..

so if i flip every year i have to add 1k to the depreciation..

thoughts

 

[united]

If you were a dealer, you would not have to pay. I wonder if anyone leases?

thought flipping every year would be the answer the the poo problems..but just paid a grand in taxes and wonder if anybody out here flips every year and what kind of a hit you take..i do at least 3k a year..so after 2 im at 6K and then at risk of the issues..

so if i flip every year i have to add 1k to the depreciation..

thoughts

 

[sweeperguy]

thought flipping every year would be the answer the the poo problems..but just paid a grand in taxes and wonder if anybody out here flips every year and what kind of a hit you take..i do at least 3k a year..so after 2 im at 6K and then at risk of the issues..

so if i flip every year i have to add 1k to the depreciation..

It doesn't work the same with sled trade ins like it does with cars, you only pay tax on the difference between the trade and purchase price. If it was a car you'd only be paying tax on the 3k sounds like you paid tax on full purchase price?

 

[G]

I think he means he is putting 3 thousand miles on per year. This would be 6 thousand for two years. I would bet that a dealer would consider 3 thousand miles a year a high mileage sled no matter what brand. That would reflect on the trade in value. So yes he would be paying a lot to boot one way or the other. The to boot price would be taxable at MN tax rate of 6.785. So it ads up. He is playing the warranty game also which is smart of him or else the expenses could be even more. Sledding is not a cheap sport.

 

[Modman440]

Always bought used to avoid the issues of dealers and taxes and crap like that. Plus I've never really felt the urge to buy new.

MOD

 

[POLARISDAN]

It doesn't work the same with sled trade ins like it does with cars, you only pay tax on the difference between the trade and purchase price. If it was a car you'd only be paying tax on the 3k sounds like you paid tax on full purchase price?

3K is the miles i put on a year..6k over 2 if i dont sell..i didnt trade i bought outright

- - - Updated - - -

Always bought used to avoid the issues of dealers and taxes and crap like that. Plus I've never really felt the urge to buy new.

MOD

yea..but with my bad poo times to go 800 i have to go new to get the rear suspension..cannot trust em used..bought the backup 600 used tho.. thats where the flip every year brainstorm started..but just paid the tax to get my numbers..and went DOH!!!!

 

[ezra]

If you were a dealer, you would not have to pay. I wonder if anyone leases?

U still have to pay the tax or have the person that buys it used will have to pay . at lest that is the deal in MN.
on my mountain sleds I buy out of state and don't register them at never pay tax just buy stickers from states I ride it in has worked for at lest 10 yrs for me

 

[sweeperguy]

3K is the miles i put on a year..6k over 2 if i dont sell..i didnt trade i bought outright
!!

okay was thinking the hit was 3k got it now DUH.

 

[POLARISDAN]

U still have to pay the tax or have the person that buys it used will have to pay . at lest that is the deal in MN.
on my mountain sleds I buy out of state and don't register them at never pay tax just buy stickers from states I ride it in has worked for at lest 10 yrs for me

oh..so u dont need mn reg #'s..that wont work for me..i need the reg #'s..i bought from kip..i could have bushed with a fake invoice..but didnt think of it till after i wrote the check

 

[POLARISDAN]

thought id throw this back up and see if any more responses

 

[mrbb]

many yrs back, early mid 90's I used to trade sleds in ever yr, had a dealer that did this for what I felt was a deal, and had a new sled every yr, figured in depreciation and wear and tear, and NOT having to store it all yr then
worked well for many yrs, BUT these days, I think prices are too up there to be a value like deal as it once was, or for me for sure
not in the cards , budget just isn't what it used to be

if you can swing it and your happy , GO for it

 

[bearrassler]

POLARISDAN, you would be responsible for the sales tax on the trade difference only. If the dealer charged you 4000 to trade your MN tax would be 6.875% of 4000 or 275 bucks.

 

[POLARISDAN]

POLARISDAN, you would be responsible for the sales tax on the trade difference only. If the dealer charged you 4000 to trade your MN tax would be 6.875% of 4000 or 275 bucks.

yea if i traded it..kip would have to step UP to the plate..not sure i could get enough without selling it outright..i guess will have to wait till spring..see what kind of miles i have..then maybe do a snowcheck..now if i could get 12k MILES out of a poo(p) 800..id be home free

 

[bearrassler]

When I was a dealer a common mistake many customers would make was thinking that they were better off buying outright instead of trading but not selling their sled or boat for enough money. Let's say Kip wants 14,000 for the new sled and will give you 10,000 for your trade. You think you can get more and end up selling it for 10,500. You think that you just saved 500 bucks but it really cost you more money. With the trade you pay 4000 plus your tax of 271.40 for a total of 4271.40. The no trade deal is 14,000 plus tax of 949.90 for a total of 14,949.90 minus the 10,500 that you sold yours for, for a total of 4449.90 or 278.50 more out of your own pocket.

 

[eao]

In Michigan, you would pay sales tax on the full price less dealer discount (if any) and not on the after trade-in price.

 

[kip]

bearrassler is correct, you'll save more by trading in my humble opinion from a tax stand point. In Michigan eao is correct. The only problem is if you don't register your sled which means paying taxes then it makes it impossible to trade it in to a dealer as we cannot legally sell a used sled without a registration, so if ezra is selling to a friend then fine or if the previous owner of ezra's sleds registered then that's fine too as long as a registration is provided for the dealer you're trading to. Private to private sale is much simpler of course where as a dealer involved transaction is not as simple. I understand people trying to save money as lord knows I like to save but you really need to think about what you're going to do with the sled or any item down the road as you can potentially set yourself up for a headache. I see it here all the time, people want to trade but cannot provide a registration or title because they never registered themselves. I feel bad for them, but as a dealer I have to stay away from that, it's simply not worth losing my dealer license over.

 

[old abe]

Very well said Kip. There is always the other side to the story. Things not thought through, usually cost you $$$.

 

[G]

Interesting. In the past two years I have bought 2 sleds from Wisconsin. One from a dealer and one from a private party. Neither had any registration. Bought them both with a handwritten bill of sale. Through the years I have bought a lot of toys that have never been registered. Boats, 4 wheelers, trailers and other misc stuff that should carry a registration.Seems there are a lot of guys out there that don't play by the rules.

 

[fireworks]

Back in 2011 the wife and I were involved in totaling out 2 sleds same time. Our case went to special investigations department with State Farm. We had to prove that we had trail permits in the state we were riding at time of accident. And registration in the state where we store and ride sleds majority of time. The agent told us that we could be in jeopardy of having coverage if sleds were not registered. Glad I pay my sales tax and register my sleds.

Anyone else been told that or ran into a problem?

 

[old abe]

You were told right. And don't ever think the insurance co's leave any stones unturned.