Re: BarretJackson buy back
[Re: Pacnorthcuda]
#3032692
04/11/22 06:29 PM
04/11/22 06:29 PM
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Joined: Jan 2006
Posts: 547 boston mass-moving to long isl...
massdaytona
mopar
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mopar
Joined: Jan 2006
Posts: 547
boston mass-moving to long isl...
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[s][/s] No sales tax because there really is no sale, the term is just to enforce that you are on the hook for auction fees. correct me if i am wrong, but i thought when u con sign a vehicle at BJ, u no longer r the owner, so if u re-buy the car, no sales tax is due??? - i dunno
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Re: BarretJackson buy back
[Re: massdaytona]
#3032696
04/11/22 06:38 PM
04/11/22 06:38 PM
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Joined: Nov 2007
Posts: 21,840 Kirkland, Washington
Pacnorthcuda
Too Many Posts
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Too Many Posts
Joined: Nov 2007
Posts: 21,840
Kirkland, Washington
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[s][/s] No sales tax because there really is no sale, the term is just to enforce that you are on the hook for auction fees. correct me if i am wrong, but i thought when u con sign a vehicle at BJ, u no longer r the owner, so if u re-buy the car, no sales tax is due??? - i dunno Well BJ is not going to get involved with the states sales tax laws, but since the title isn’t going to transfer to any new owner, no sales tax would be involved.
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Re: BarretJackson buy back
[Re: IMGTX]
#3032765
04/11/22 10:40 PM
04/11/22 10:40 PM
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Joined: Jan 2003
Posts: 10,615 Freeport IL USA
poorboy
I Live Here
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I Live Here
Joined: Jan 2003
Posts: 10,615
Freeport IL USA
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Interesting question.
I guess it depends on how the law looks at the transaction(s).
The feds would say that you are responsible for the profit you made during the deal but is this one deal or two? When I transfer ownership to BJ is that the end of one deal and when I have to "Buy it back" is that a second deal?
An important thing to consider s that it is against federal law for you or your agent to bid on items that you own and are being auctioned. It's called Shill Bidding. The whole purpose of you signing ownership to Barret Jackson is so you can legally bid on it since you do not own it anymore. The fact you get a taste of the profits for Barret Jackson selling THEIR car that YOU USED TO OWN smacks of Shill bidding but apparently isn't considered such or somebody would have pressed charges for it by now. Imagine how you would feel when you offer $50,000 for a car and end up in a two person bidding frenzy and end up paying 100K for that car, only to find out the other person was going to profit off you paying more for the car.
So I figure that
Scenario #1 If I sell a car to an "Other guy" and he titles it and declares he paid $X then I am on the hook for the sales tax. At that point I no longer own the car. If I buy it back and re-title it in my name the "Other Guy" he is on the hook for sales tax also, and I own the car again. We both pay sales tax.
Scenario #2 If I sell a car to an "Other guy" and he returns it to me for a different price, but the title isn't transferred then I could try to squeak by without paying taxes because I never stopped owning the car. (I bet the state/feds would say differently)
Now replace the other guy in the above 2 scenario's with Barret Jackson.
Scenario #1 Sales tax is paid twice. Scenario #2 Is shill bidding because I own the car I am bidding on.
My guess is that you pay sales tax on when you sell it to Barrett Jackson and they pay sales tax when they sell it to you on the auction block, and then you pay income tax on the amount of profit you made on the whole deal. I'm sure BJ's fees more than cover them paying sales tax and cut into your money accordingly.
Still I am not only speculating.
Except, the buyer is the one that pays the sales tax, not the seller. I suspect that Barret Jackson isn't buying your car, they are probably selling it for you under an iron clad set of co-selling terms. You sign the title and hand it to them, they sell your car for the pre described fees. They pay no sales tax, you sell for no reserve, you have no recourse. the new buyer gets your signed title. You bid and buy based on a buyer's number, that may, or my not be in your name. If you are the winning bid, you get to pay Barret Jacksons buyer fees and sales tax based on the final bid. Since you only signed the title, it really never left your name until the new owner was the highest bidder, since that was you, the title itself never left your name, but you will also get to pay the seller's fees. You pay the sellers fees, the buyer's fees, and probably sales tax just to keep your car. The guy was probably unhappy because he was shilling up the price and the price went higher then the real buyer wanted to pay, or maybe the buyer figured out he was bidding against the car owner and wanted to teach him an expensive lesson.
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Re: BarretJackson buy back
[Re: poorboy]
#3032820
04/12/22 09:08 AM
04/12/22 09:08 AM
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Joined: Oct 2005
Posts: 8,899 Ontario, Canada
Stanton
Don't question me!
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Don't question me!
Joined: Oct 2005
Posts: 8,899
Ontario, Canada
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Thought it was sold at no reserve. There is never a "reserve" at BJ. If the seller is not satisfied with a bid they have to bid it up themselves and it may come down to them basically buying the car back. At this point they pay the "seller fees" to BJ but no sales tax since there is no transfer of ownership. BJ would eventually pay tax on the "revenue".
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Re: BarretJackson buy back
[Re: cudaman1969]
#3033167
04/13/22 01:59 PM
04/13/22 01:59 PM
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Joined: Jan 2003
Posts: 4,156 Canada -- Posts: 4034 -Registe...
5thAve
Doesn't care what this says anyway
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Doesn't care what this says anyway
Joined: Jan 2003
Posts: 4,156
Canada -- Posts: 4034 -Registe...
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So when you give the signed title to BJ they give you no money? Who pays the BJ fees if it sells to someone other than original owner? How much % would the original owner get from sale? Does the owner have a claimed value in case it sells for way less? (no profit, no fed tax) If it's like a normal auction they don't give you and money and the original owner would get whatever the car sold for minus whatever the sellers fee is. If it sells for less then they expected that's the risk they took.
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