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Author Topic: STAR 2018 Full survey results  (Read 4508 times)

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Offline HawkGTRider

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Re: STAR 2018 Full survey results
« Reply #90 on: July 26, 2018, 06:17:20 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.
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?????

And pay income tax on the full retail value.
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.
Geoffrey Greene
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Difficult roads can lead to beautiful destinations.

Offline RichGrab

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Re: STAR 2018 Full survey results
« Reply #91 on: July 27, 2018, 09:46:00 AM »


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.
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?????

And pay income tax on the full retail value.
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.
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.
Rich Grabowski;Jackson, MI; MSTA #12038
2016 BMW F800GT (STAR 2016 Raffle Bike)
2001 VFR800 fi

Online Patmo

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Re: STAR 2018 Full survey results
« Reply #92 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.
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Offline RichGrab

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Re: STAR 2018 Full survey results
« Reply #93 on: July 27, 2018, 03:13:41 PM »
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.
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.)
Rich Grabowski;Jackson, MI; MSTA #12038
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2001 VFR800 fi

Online Patmo

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Re: STAR 2018 Full survey results
« Reply #94 on: July 27, 2018, 05:31:06 PM »
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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Offline HawkGTRider

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Re: STAR 2018 Full survey results
« Reply #95 on: July 27, 2018, 08:31:05 PM »
In Tennessee, you don't have to pay sales tax on a "won" bike...until you try to register it. At that time, the State will collect their 3# of flesh.
If you don't want to keep the "won" bike, you don't have to pay the sales tax...until you find out you can't sell the bike until you've registered it. And once again, the State collects its fees.


If I understand it, if you trade the bike in on a different bike, you will pay sales on the "won" bike, but only on the difference between the "won" bike and the new bike assuming the new bike is more expensive. If it happened to be less, then the State folks will just smile as they shrug their shoulders and say too bad.


At least that's the way I think it is in Tennessee.
« Last Edit: July 27, 2018, 08:36:29 PM by HawkGTRider »
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Offline RichGrab

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Re: STAR 2018 Full survey results
« Reply #96 on: July 27, 2018, 08:55:32 PM »
Pat - What Geoffrey said. The sales tax becomes due when you register it just like any vehicle. They asked me what it was worth, tried to get away with "Well I won it, so really none." They laughed and I put a value on it which they accepted.

Geoffrey - well, if you trade it for something else at the dealer and don't have to register it first, then you'd pay the sales tax on whatever the value is of the bike you actually buy (and I doubt the dealer is gonna let you trade for something cheaper and give you money back  ;D ).

Note - for income tax purposes, it all depends on what tax bracket you are in. I'm a poor, underpaid single guy, who works for a non-profit. My bike win increased my gross income by like 30%.
Rich Grabowski;Jackson, MI; MSTA #12038
2016 BMW F800GT (STAR 2016 Raffle Bike)
2001 VFR800 fi

Offline Ride4MS

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Re: STAR 2018 Full survey results
« Reply #97 on: July 27, 2018, 11:08:51 PM »
And in Minnesota, about 10 years ago, I was given a 1986 Gold Wing Interstate, by my cousin.  It was her Dad's, my Uncle and the agreement was to restore it and not sell it.  It had sat for about 10 years under a small roof, no sides on the shelter, dirt floor with about 1" bat crap on the seat.
I had to get a paper from her stating it was a gift and was worth less than $50.00 as is.  By the time I got done, with going to our local DMV twice, which as we have found out through the years, they do not know anything.  I finally went to the next town and they corrected all the forms and all I had to do is pay for the collector plate, as it is over 20 years old, and never have to buy another plate again.


The first DMV said I had to pay $131.00 sales tax and fees, which I did, because the form stating it was a gift did not mean anything.  They said Gold Wings are worth a fortune no matter what age or shape.  The 2nd DMV filled out forms, and the $131 was sent back from the state of MN to me in about 30 days.  The transfer and collector license was $10.00.
I also did not have to pay the license tab fees for all the years it was not licensed while sitting.


So, every state is different, but just giving some ideas here, so that if you are as lucky as Rich or Sherry this year, make sure the DMV knows how to process correctly.  And, every state will be different.


By the way, when Sherry got her raffle bike home, Husband Doug rode it, and liked the Versys so much, that he bought one for himself.
Carl Wieman
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Offline DirtFlier

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Re: STAR 2018 Full survey results
« Reply #98 on: July 28, 2018, 03:56:26 AM »
Carl - you're correct about finding a DMW worker who knows the ropes making all the difference!

Offline HawkGTRider

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Re: STAR 2018 Full survey results
« Reply #99 on: July 28, 2018, 05:20:40 AM »
<snip>

By the way, when Sherry got her raffle bike home, Husband Doug rode it, and liked the Versys so much, that he bought one for himself.

That's outstanding!
Geoffrey Greene
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Offline STLTHMSTA

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Re: STAR 2018 Full survey results
« Reply #100 on: July 28, 2018, 07:10:14 PM »
My .02 worth here as I had some experience with this. Waaaaaay back in '97 I won the Honda Homecoming Grand Prize, a choice of 4 bikes they made at Marysville. To keep it short: the bike was sent to my local dealer (Middletown Hon-Kaw-Yam) and processed it like a new bike sale. Honda sent them a check for the value of the bike which I signed over to the dealer and I paid the sales tax as if I were buying the bike. So the state got theirs then and there, the 1099 was added to my income for that year and I then paid the income tax on that at Tax Time in April.


I also upgrade the Goldwing Aspencade to an SE and paid the difference. So my "FREE" motorcycle cost me about $7500 but where are ya gettin' such a deal on a new bike. Freedom isn't free whether your talking about our enemies or our government!


Also I have possession of a friends bike while he is out of the country. He notarized the title and I transferred it to me so I could tag it and ride it as my own. Locally here in Ohio they must not too anal about the sale tax and sticking you for all they can. I told the clerk he basically gave it to me and I paid only the fees as she listed it as a gift. To answer the question that popped in your head, I'll just give it back when he returns.
I rode that '23 year old VFR today and it's still sweet!!!!