Understating sales price to reduce taxes

Hi. Looking to buy a vehicle for 22,000. KBB has the value at 24,000. I live in PA and would like to report sale at 13,000 to save some money on taxes. I know it's wrong, but can I get caught?

leowis1 said:

Hi. Looking to buy a vehicle for 22,000. KBB has the value at 24,000. I live in PA and would like to report sale at 13,000 to save some money on taxes. I know it's wrong, but can I get caught?

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Well yeah you can certainly get caught lol, what kind of question is this? You go publicly online to ask advice on doing tax evasion especially one with that large of an amount! Come on man

Every state is different but generally if you are buying private party where the seller just signs the title over and maybe a sales document, the sale price is usually put on there. So in theory if the seller didn't care, they could put whatever price they wanted to, or let you fill it out. Many states though will charge you for either the sales price or what their system says its value is, whichever is more expensive. Here in KY, they will go by sale price on a private party sale and if you don't have it on there, they will go by what their system values it at.

If you are buying through a dealer, there is generally really no way around paying the sales tax on the full purchase price.

Good luck

Probably won't get caught but what's the penalty for tax evasion? Worst cas scenario, prison I think. You wanna risk it for a few hundred bucks?

If you can't afford the taxes, you can't afford the vehicle.

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Down here in Georgia, the state determines value for you. I can buy a truck for 10k, but if it's valued at 12k, I pay tax on 12k. I can fill out a form to challenge it, but I still have to pay the tax up front for it and wait on the challenge to be reviewed.