Thread Archive > STAR 2018
STAR 2018 Full survey results
HawkGTRider:
--- Quote from: TN2Wheeler on July 26, 2018, 06:09:49 pm ---
--- Quote from: RichGrab on July 17, 2018, 09:23:47 am ---
--- Quote from: Ohiomsta on July 16, 2018, 08:23:58 pm ---Come on guys, you have got to know with out being told that dealers take bikes as trade ins. New or used you can trade a bike to a dealer.
--- End quote ---
Yes Jon that is true. But we are talking about two different things, exchanging a prize for something else versus trading in something. Taking the new bike and using as a trade in is FAR DIFFERENT than the option to put the winnings toward a different bike. For me to trade in something, first I must own it - YES?????
--- End quote ---
And pay income tax on the full retail value.
--- End quote ---
That's certainly the way it seems to work. Of course, it all depends on what the 1099 has as the value of the bike.
RichGrab:
--- Quote from: HawkGTRider on July 26, 2018, 06:17:20 pm ---
--- Quote from: TN2Wheeler on July 26, 2018, 06:09:49 pm ---
--- Quote from: RichGrab on July 17, 2018, 09:23:47 am ---
--- Quote from: Ohiomsta on July 16, 2018, 08:23:58 pm ---Come on guys, you have got to know with out being told that dealers take bikes as trade ins. New or used you can trade a bike to a dealer.
--- End quote ---
Yes Jon that is true. But we are talking about two different things, exchanging a prize for something else versus trading in something. Taking the new bike and using as a trade in is FAR DIFFERENT than the option to put the winnings toward a different bike. For me to trade in something, first I must own it - YES?????
--- End quote ---
And pay income tax on the full retail value.
--- End quote ---
That's certainly the way it seems to work. Of course, it all depends on what the 1099 has as the value of the bike.
--- End quote ---
But if you trade the "won" bike in, would you still get a 1099 on it?? And if so, then you are getting hit twice on sales taxes.
Patmo:
Question.....if you win a bike, do you pay SALES tax? Or just income tax? Both? Neither? One, but not the other? Some other kind of tax?
Of course, this may depend on where you live as sales and state/local income tax laws vary from location to location. Tennessee, for example, has no income tax, but has a very high sales tax (9 1/2% in some areas). The sales tax rate where I live is different than it is just across the river in Cincinnati, Ohio. Some areas have no sales tax.
But I would think that unless you live where there is no sales tax, you will pay sales tax on the purchase of a bike, trade-in or no trade-in.
RichGrab:
--- Quote from: Patmo on July 27, 2018, 11:47:34 am ---Question.....if you win a bike, do you pay SALES tax? Or just income tax? Both? Neither? One, but not the other? Some other kind of tax?
Of course, this may depend on where you live as sales and state/local income tax laws vary from location to location. Tennessee, for example, has no income tax, but has a very high sales tax (9 1/2% in some areas). The sales tax rate where I live is different than it is just across the river in Cincinnati, Ohio. Some areas have no sales tax.
But I would think that unless you live where there is no sales tax, you will pay sales tax on the purchase of a bike, trade-in or no trade-in.
--- End quote ---
I'll be happy to answer based on my experience in 2016. I paid both State sales tax (6%) on the vehicle when I registered it and got an IRS Form1099-Misc from MSTA for the value of the win. That had to be declared on both my Federal and State Income tax returns. And since there was no tax withheld on those "earnings", when filing I had to pay the tax on that. Normally I get about $2k back in refunds, that year all in all it cost me about $4,200 and no fed or state tax refunds. Hope that helps. (PS - even when I registered my VFR which you Pat so graciously stored and delivered to me in Michigan, I paid sales tax at registration. Pretty sure I also did on my car when I first registered it in Michigan.)
Patmo:
Hmmm...wasn’t aware thst you had to pay SALES tax on winnings. Wonder if that’s the same in other states/locations?
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