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upjeeper
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« on: April 08, 2011, 04:41:47 PM » |
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My wife has a coworker who won an Arlen Ness chopper a year ago in a contest. Evidently she has to pay sales tax and income tax on the bike (retail price about $50,000)
She's having a hard time as a college student saving up the $3500 or so to pay sales tax on it, plus the $10k or whatever it is to cover income tax.
She doesn't even ride so she just wants to sell it.
She has tried eBay and Craigslist, with no luck. The only serious offer fell through because she still hasn't titled it yet (can't title until she pays the sales tax). Kind of a vicious circle. My suggestion was to borrow or credit card to pay for the title, so she can transfer it over. She did look into consignment shops but they want 30% plus she has to title and insure it.
Wondering if you guys have any suggestions.
thanks
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kybigmac
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« Reply #1 on: April 08, 2011, 05:18:57 PM » |
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In ky. you can put a vehicle in your name without licensing it or paying tax for $6. Its called title only.
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« Last Edit: April 08, 2011, 05:40:05 PM by kybigmac »
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Tropic traveler
Member
Posts: 3117
Livin' the Valk, er, F6B life in Central Florida.
Silver Springs, Florida
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« Reply #2 on: April 08, 2011, 06:13:00 PM » |
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Part it out. Nobody wants those white elephants anyways.  |
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'13 F6B black-the real new Valkyrie Tourer
'13 F6B red for Kim
'97 Valkyrie Tourer r&w, OLDFRT's ride now!
'98 Valkyrie Tourer burgundy & cream traded for Kim's F6B
'05 SS 750 traded for Kim's F6B
'99 Valkyrie black & silver Tourer, traded in on my F6B
'05 Triumph R3 gone but not forgotten!
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NiteRiderF6
Member
Posts: 559
Doug n Stacy
Mississippi
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« Reply #3 on: April 08, 2011, 06:38:36 PM » |
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I don't see how she would have to pay sales tax on something she won.... I would consult with an accountant before I paid any sales tax. Income tax I can see, but only on the amount of actual sale, not full retail price. Won't they give her a cash amount instead of the chopper? I would surely never go the credit card or loan route that you mentioned. If that is really the situation she is in, I'd tell them to come and pick it up..... no harm, no foul.
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1999 Honda Valkyrie Interstate - SuperValk Mod - SS - Lots of Chrome!  |
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Oss
Member
Posts: 12621
The lower Hudson Valley
Ossining NY Chapter Rep VRCCDS0141
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« Reply #4 on: April 08, 2011, 06:46:16 PM » |
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hate to say this but if she entered the contest she has to pay taxes
same as wheel of fortune or publishers clearinghouse and the lottery
Its been a long time 30 yrs + since tax law for me but I think the only exception is if you DONT fill out an entry and the contest folks randomly choose you on their own like the NOBEL prizes or random academic scholarships those are more like gifts
TAXES SUX
if you cant pay the tax dont enter the contest is the lesson unfortunately and you dont have to claim a prize.....
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« Last Edit: April 08, 2011, 06:49:21 PM by Oss »
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If you don't know where your going any road will take you there
George Harrison
When you come to the fork in the road, take it
Yogi Berra (Don't send it to me C.O.D.)
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NiteRiderF6
Member
Posts: 559
Doug n Stacy
Mississippi
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« Reply #5 on: April 08, 2011, 06:51:40 PM » |
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Oss, you are correct, but you do have the option of not accepting the "prize". Since it was never titled, I would let them have it back! The only way his friend can win is if a very understanding buyer will help her through the process. Sales tax? Really? I don't think so!
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1999 Honda Valkyrie Interstate - SuperValk Mod - SS - Lots of Chrome! |
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NiteRiderF6
Member
Posts: 559
Doug n Stacy
Mississippi
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« Reply #6 on: April 08, 2011, 06:53:29 PM » |
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When I win at the casino I don't have to pay sales tax! I get a 1099 and it is treated as income; this should be the same deal.
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1999 Honda Valkyrie Interstate - SuperValk Mod - SS - Lots of Chrome! |
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~ Timbrwolf
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« Reply #7 on: April 08, 2011, 06:55:59 PM » |
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....tell her to go talk to a Harley Dealership..(they probably have more customers looking for that kind of bike)....or a "Custom" Bike Dealer....tell em if they,re willing to pay the 13K in taxes...she will sell them the bike for 10K......thats 10K more then she has now....and they get an Arlen Ness for less then half price... ......part it out ???. ...its an Arlen Ness for Christ sake..  |
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. . . ...I saw a werewolf at Trader Vics. . . ...his hair was perfect...
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Russell Rice
Member
Posts: 253
I think I can, I think I can, I think I can!
Owasso, Oklahoma
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« Reply #8 on: April 08, 2011, 07:13:27 PM » |
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My Mother in Law won a custom chopper from a casino here. She was asked if she wanted the cash or the bike. They told her the bike was worth $40.000 and they would "buy " it back for $10.000. Well she was not smart about it and took the bike which was worth only $14.000. She too was unable to pay for the tag title and TAXES so she has had the bike for about 6 years now and is hiding from the IRS because the casino did a 1099 on her for the $40.000 the casino said the bike was worth, what a cluster F*#&. She does not work and does not have an address ( she lives with her boyfriend) so the IRS calls here looking for her all the dang time! What a nightmare! Casinos+ uninformed people = HUGE PROBLEMS!!!!! By the way my mother in law is only 4'2" and the chopper sits in there front room as art....lol
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Gryphon Rider
Member
Posts: 5227
2000 Tourer
Calgary, Alberta
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« Reply #9 on: April 09, 2011, 01:11:18 PM » |
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Here's one instance where the Canadian tax system is better than the American one. Lottery (and similar) winnings are not considered taxable income. If you win the $50M in Lotto Max, you have $50M to spend as you like. Interest earned from the invested winnings is taxable, however.
So why should she pay sales tax on the motorcycle? Didn't the organization that purchased the bike to raffle it off pay the sales tax already?
Regarding paying income tax on winnings: I assume the cost of ticket purchases is a deductible expense? It would only make sense!
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Joevalk
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« Reply #10 on: April 09, 2011, 04:18:43 PM » |
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I'll give her $10,000 for it.
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Tropic traveler
Member
Posts: 3117
Livin' the Valk, er, F6B life in Central Florida.
Silver Springs, Florida
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« Reply #11 on: April 09, 2011, 07:33:08 PM » |
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......part it out ???. ...its an Arlen Ness for Christ sake.. All ANY bike is is a collection of bolted together parts. If being an "Arlen Ness" was so darn exciting I'm sure some dork would have snapped it up by now gladly paying the taxes & all. Sell the worshipped Arlen Ness parts, get your $$ back {+ something for your efforts} then give 'em back the frame & title.  I'm sure the S&S engine alone would bring a pretty penny. 100+ HP from a Twink costs some bucks!  |
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'13 F6B black-the real new Valkyrie Tourer
'13 F6B red for Kim
'97 Valkyrie Tourer r&w, OLDFRT's ride now!
'98 Valkyrie Tourer burgundy & cream traded for Kim's F6B
'05 SS 750 traded for Kim's F6B
'99 Valkyrie black & silver Tourer, traded in on my F6B
'05 Triumph R3 gone but not forgotten!
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Jess Tolbirt
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« Reply #12 on: April 10, 2011, 07:24:08 AM » |
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I may be a little ignorant but why not go to the bank and take out a load to pay the taxes and title the bike and then sell it?
if you have a 50,000 dollar bike for collateral i am sure a bank would loan the tax value of it...
then title the dam thing and sell it!!!
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flcjr
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« Reply #13 on: April 10, 2011, 08:38:00 AM » |
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Wich Arlen Ness chopper is it ? I was looking at his web site and I don't see any worth or selling for 50,000 or even close. Bring it MT. there is sales tax here!! Should be an easy sell if you get the right audience. I might be interested? Details??
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upjeeper
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« Reply #14 on: April 10, 2011, 09:26:27 AM » |
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says it's "2008 Wiley X Arlen Ness “Highliner” Motorcycle" looks like thils http://www.wileyx.com/promos/hvp_sweeps/- Mileage: 141 (factory miles only) - S&S rubber mounted 124 polished motor - Ness RSD 6-speed transmission - Ness 6-piston caliper (front) - Ness 6-piston caliper (back) - Rivera Pro Clutch - Billet Wheels - Two into one exhaust - Avon 300 rear tire if you'd like more details feel free to PM your email to me, i'll pass it to her. thanks! |
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flcjr
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« Reply #15 on: April 10, 2011, 09:49:04 AM » |
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??? didn't know it was a advertisement for a someone else. Looks like a nice bike but retail on the highliners and other arlen ness choppers look to be in the mid 20s . Might be a tough sell if it is the one in the link. not many want a bike that is painted for a company. new paint might help but that is just gonna add to the money problems. Good luck I would see about getting it reevaluated for value ther is no way that it is worth 50,000. If you get the value down maybe the taxes will be affordable.
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