Silk Road forums

Discussion => Legal => Topic started by: Yousaf on September 26, 2013, 07:16 am

Title: Buying a car in cash on craigslist, IRS tax return at the end of year?
Post by: Yousaf on September 26, 2013, 07:16 am
If I buy a 30k car on craigslist with drug money through a private sale on Craigslist and my income is only $34,000 a year, how would I go about handling this at the end of the year with my tax return?  I will pay my $1000 worth in taxes when I buy the car and register it but how unwise is this decision?
Title: Re: Buying a car in cash on craigslist, IRS tax return at the end of year?
Post by: FollowIcculus on September 26, 2013, 07:23 am
Well I guess it could possibly attract some unwanted attention but its not like they could make a case of income tax evasion stick.  How could they possible prove that you haven't been saving cash since you were a little kid so that one day you could buy a nice car straight up?  They don't know how long you have been saving.  Unless you have only claimed $30,000 in income for your whole life time I would think you are fine.  Again though, it might make someone pay more attention to what you're doing.
Title: Re: Buying a car in cash on craigslist, IRS tax return at the end of year?
Post by: shulginsindex on September 26, 2013, 07:40 am
If I buy a 30k car on craigslist with drug money through a private sale on Craigslist and my income is only $34,000 a year, how would I go about handling this at the end of the year with my tax return?  I will pay my $1000 worth in taxes when I buy the car and register it but how unwise is this decision?

unwise/gamble
Title: Re: Buying a car in cash on craigslist, IRS tax return at the end of year?
Post by: PinnacleGoods on September 26, 2013, 06:35 pm
Why do you think all those rappers sing things like "Got everything in my momma name. But I'm hood rich".. Don't let eyes get on you. Unwise decision. Keep your 10 year old Toyota Corolla.

OR, if you must, find someone who would like to take a 30k gambling loss, and you take 30k in gambling earnings. pay tax on that.  But buying expensive things you don't need is like asking to get unwanted attention...
Title: Re: Buying a car in cash on craigslist, IRS tax return at the end of year?
Post by: Yousaf on September 26, 2013, 07:43 pm
So buying a car through a private sale on craigslist, paying in cash, and paying taxes while registering the car ($1200 total in taxes) is no bueno?  I figured I already paid my taxes so what's the big deal?
Title: Re: Buying a car in cash on craigslist, IRS tax return at the end of year?
Post by: jarodfromsubway on September 27, 2013, 12:51 am
Why can't you tell the seller when you want to buy to car to say you paid $10k-15k when you switch titles. It looks a lot better than 30k. When you transfer the title they will ask why they are selling under kbb or what not and you can list a variety of reasons/problems with the car such as blown engine/transmission problems/major body damage as if you were in a hit and run and it wasnt reported to insurance to show why its listed low. I've done it a lot actually when I buy cars and pay a lot less in taxes. If it was a cheaper car you could have them gift it and pay no taxes too, but its not reasonable to do that with a 30k car it will attract attention. No one needs to know what your actually paying.
Title: Re: Buying a car in cash on craigslist, IRS tax return at the end of year?
Post by: FugNuggetz on September 27, 2013, 03:08 am
I like having a car that looks like a piece of shit. Key word is LOOKS. Way less of a cop magnet, and less likelyhood of a random break in. Maybe buy a cheapo and just mod it to fuck?
Title: Re: Buying a car in cash on craigslist, IRS tax return at the end of year?
Post by: Rastaman Vibration on September 27, 2013, 09:17 am
Why can't you tell the seller when you want to buy to car to say you paid $10k-15k when you switch titles. It looks a lot better than 30k. When you transfer the title they will ask why they are selling under kbb or what not and you can list a variety of reasons/problems with the car such as blown engine/transmission problems/major body damage as if you were in a hit and run and it wasnt reported to insurance to show why its listed low. I've done it a lot actually when I buy cars and pay a lot less in taxes. If it was a cheaper car you could have them gift it and pay no taxes too, but its not reasonable to do that with a 30k car it will attract attention. No one needs to know what your actually paying.

Great advice! +1

As a previous poster said, you could have been saving cash for many years. But 15k is a lot more believable than 30k.
Title: Re: Buying a car in cash on craigslist, IRS tax return at the end of year?
Post by: fakename709 on September 27, 2013, 10:27 am
Too much Breaking Bad for me,
I read "Buying a Car Wash".
Title: Re: Buying a car in cash on craigslist, IRS tax return at the end of year?
Post by: railroadbill on September 27, 2013, 12:18 pm
The problem with reporting lower than paid is that you are asking the dealer to turn his clean profits into dirty money. Not sure how hard that is to find.

What exactly constitutes the title though? The chassis? The engine? Why could you not then buy the core of the car for under $10k then purchase the remainder in small parts equalling $30k? You could say the sale was for parts and later you changed your mind.
Title: Re: Buying a car in cash on craigslist, IRS tax return at the end of year?
Post by: thebakertrio on September 27, 2013, 03:05 pm
What a amazing point! If you pay the tax then why are they busting your balls in the first place? You can not with with these people =P