$6400 Owner's Manual?

[Tango5]

It says you pay "Retail sales tax". If it's not HST or PST wtf is it? http://www.mto.gov.on.ca/english/dan...d.shtml#retail

-Jamie M.

Pre HST the tax payable on a private vehicle sales was PST (Provincial Sales Tax) but not GST (Goods and Services Tax). When those two taxes were combined to form the Harmonized Sales Tax, the Automobile Dealers Association lobbied the provincial government very aggressively to increase private vehicle tax to the same rate as HST. They portrayed themselves to be at great disadvantange having to "add" 13% to the selling price of a vehicle, whereas a private seller only added 8%.

OpenGambit is correct, this is strictly a provincial tax on private vehicle sales that happens to match the GST rate. The provincial government had the option of actually reducing tax on a number of items under the HST deal with the feds, but chose not to, and instead added retail tax to a number of items (mostly so called sin items) to match the HST percentage, and to appease lobbying factions.

The UVIP actually will show a $ value for a motorcyle, but it is currently not used to determine the tax due.

[OpenGambit]

If you buy a bike for a dollar and sell it two years later for $5000 do you have to pay capital gains?

Tee hee, in theory? or in practice?

Seriously tho, YES you have a capital gain, and YES you have to pay taxes on that capital gain.

And for the people who are gonna ask why you can't get a loss, thats because there is a specfic rule saying you can't claim loses.

Basically government only takes upside on the capital gains/losses associated with what is considered "personal-use property" which includes cars and bikes and boats etc.

[rx_se7en]

what about insurance? if it ever get stolen or involved in an accident, what would the insurance company pay you?
The market value or the declared purchased value at MTO??

[Tango5]

what about insurance? if it ever get stolen or involved in an accident, what would the insurance company pay you?
The market value or the declared purchased value at MTO??

The insured value and the purchase price are not directly related.

[OpenGambit]

The insured value and the purchase price are not directly related.

Which of course makes sense, otherwise you would have a bunch of people selling crap bikes to their friends for huge amounts just to have them "stolen" weeks later.

Insurance companies pay out FMV, they don't care about what you paid.

[Kedo]

I agree with what everyone is saying and doing on this thread but at the same time, simple put it is Fraud/tax evasion. Although I agree the tax is just another money grabbing goverment process, I am not so sure its a great idea to openly write about it being done.
Oh ya thats right there are no GTAM members who happen to work for the MTO on this site who will nail someone later when they try it...lol...

[ababab]

I agree with what everyone is saying and doing on this thread but at the same time, simple put it is Fraud/tax evasion. Although I agree the tax is just another money grabbing goverment process, I am not so sure its a great idea to openly write about it being done.
Oh ya thats right there are no GTAM members who happen to work for the MTO on this site who will nail someone later when they try it...lol...

^^Haha wise man.