Foretwoone Posted September 5 Share Posted September 5 Just bought a boat from a private party for $10k and paid by wire, so essentially like cash. All 3 titles are clear and boat is still registered to original owner for a few months. They did write up a BOS outlining the three titles and priced the boat at $10k, motor and trailer at $0. Now let me preface this by saying I know this is sketchy but I'm not into giving the government more than I already do so.... Since Texas allows have written or none at all bills of sale, what would preclude me from claiming the sales price was $1 to avoid almost $700 in taxes? Anyone else have experience with a private party sale in Texas? Quote Link to comment Share on other sites More sharing options...
Global Moderator TnRiver46 Posted September 6 Global Moderator Share Posted September 6 Courthouse is wise to that trick, have been for years. Quote Link to comment Share on other sites More sharing options...
Bankc Posted September 6 Share Posted September 6 I wouldn't risk it. High likelihood of getting caught and paying a lot more than $625 in use tax. Plus that money goes to the Texas Parks and Wildlife Department, so it'll come back to you over time. Quote Link to comment Share on other sites More sharing options...
airshot Posted September 7 Share Posted September 7 Most title places have acess to market values on vehicles that require a title. The know when your sale price is way below fair market value. In my state they often contact the seller to confirm the selling price after the sale. The fines and penalties can be quite stiff. You need to cover all your tracks if you expect to get away with this. Quote Link to comment Share on other sites More sharing options...
@reelChris Posted September 7 Share Posted September 7 In the event that you wreck the boat and file an insurance claim, they very well might pay out exactly what you said it's worth. Quote Link to comment Share on other sites More sharing options...
GRiver Posted September 7 Share Posted September 7 I got caught trying to do that, here in Fl. It turned into a big ole mess. Bought a blazer for $1500.00, tried telling the state I paid $500.00 for it. They sent me a notice, the truck was worth $3500.00, and owed $xxxx.x amount more. I had take off from work, pay extra filling fees, plus they want to actually see the truck and check all VIN numbers. I did get them to lower the value being it wasn’t in “ like new” condition, but it was more than I had actually paid. In the end it cost me more in the long run. Should have stuck with the actual price, had a bill of sale to back that one up. 1 Quote Link to comment Share on other sites More sharing options...
GaryH Posted September 7 Share Posted September 7 Since you just posted all this information on a public forum I don’t think it’s a good idea to try it. 1 Quote Link to comment Share on other sites More sharing options...
Super User A-Jay Posted September 7 Super User Share Posted September 7 On 9/5/2023 at 1:05 PM, Foretwoone said: Since Texas allows have written or none at all bills of sale, what would preclude me from claiming the sales price was $1 to avoid almost $700 in taxes? Having a moral compass. As well as the confidence and self respect to use it. A-Jay 7 Quote Link to comment Share on other sites More sharing options...
Super User Mike L Posted September 7 Super User Share Posted September 7 Regardless of the state you’re in they aren’t stupid, this isn’t anything new. They know what the value is. @GRiver post is common down here. If you get a recording clerk who doesn’t want to be bothered or don’t care you may get away with it, maybe not Mike Quote Link to comment Share on other sites More sharing options...
thediscochef Posted September 7 Share Posted September 7 I would hope that common sense would be enough to stop you from publicly posting how you intend to commit tax fraud and then going through with it Don't get me wrong I hate the government as much or more as the next guy but there's times where it pays to use the "worth it?" gauge on the dash 2 Quote Link to comment Share on other sites More sharing options...
GRiver Posted September 7 Share Posted September 7 7 hours ago, A-Jay said: Having a moral compass. As well as the confidence and self respect to use it. Yep being young and dumb was no excuse….. I just had to take that one on the chin.. learned a valuable lesson. 1 Quote Link to comment Share on other sites More sharing options...
Super User A-Jay Posted September 7 Super User Share Posted September 7 31 minutes ago, GRiver said: Yep being young and dumb was no excuse….. I just had to take that one on the chin.. learned a valuable lesson. Oh, I am most certainly part of the young and dumb club. If we're lucky, eventually we figure it out. Usually the sooner the better. A-Jay 1 Quote Link to comment Share on other sites More sharing options...
airshot Posted September 7 Share Posted September 7 Some are not lucky and never figure it out, often there are numbers above or below their pictures!! 1 Quote Link to comment Share on other sites More sharing options...
Foretwoone Posted September 8 Author Share Posted September 8 I appreciate y'all's responses. I figured that even cash sales are traceable somehow I just don't understand how. But now based on some of the answers here I'm actually more nervous. If they dispute the value I'm kinda screwed because the boat is worth more than double the sale price. The trailer and motor are both brand new(new Yamaha 90 horse and new 22ft tandem axle pontoon trailer), they alone are probably worth $13k. The hull alone is worth $9-10k. I was just in the right place at the right time. For those still following, this is the story of how a guy goes looking for a bass boat and ends up with a friggin pontoon boat.....FML Quote Link to comment Share on other sites More sharing options...
Kirtley Howe Posted September 8 Share Posted September 8 This has worked for me in the past here in New York State. You and the seller go to a Notary Public (around here, every bank has at least one). Have the seller write up a receipt for all the items (boat, motor, trailer) with all serial/vin numbers, with the sale price FOR THE WHOLE PACKAGE,---do NOT list it by price for each item....list it ONLY as a package deal.....the date, and stating he has sold the PACKAGE to you. Have him both print and sign his name. Have the notary document the receipt. Then write up a receipt of received goods. That is just a statement by you that you received the item (again, the whole package, not the individual items) for the agreed upon sale price. Have the notary document that. NOTE: If the seller is not close by where you are, he can go to a notary near where he lives without you being there, and can mail the document to you. You can then take that document to your notary to do your part. DO NOT lie about the price you paid....you already got one heck of a deal. Take both notarized documents to the DMV or whatever it is called in your state and get your registration. By having the notarized documents, it is unlikely that they will question the price you paid even if it is below what the boat set up would normally go for so they will not tend to bother establishing a "fair market value" to charge sales tax on. By doing this, you are not guilty of any type of fraud, but you are also not likely to get tabbed for the "market value" in sales tax. Good luck. Quote Link to comment Share on other sites More sharing options...
Bankc Posted September 8 Share Posted September 8 I wouldn't sweat it. But do keep the seller's contact information, just in case. You probably won't need it, as I'm sure they've seen good deals before, just like they've seen fraud before. And I'm sure they're pretty aware of the difference. 1 Quote Link to comment Share on other sites More sharing options...
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