European Delivery and Tax Savings

BritinCA · 03-10-2007, 02:08 AM

Hi,

I am about to place an order for a 335i cabriolet for European Delivery - I live in Northern California. I heard that it's possible not to pay the CA sales tax by leaving the car in Europe for a certain period of time - is this true (I have somewhere to garage it in the UK if necessary, so that isn't a cost consideration)?

Also, does anyone know what the approximate build time is for a cabriolet for European Delivery?

Thanks v. much in advance.

Ninja · 03-16-2007, 12:51 AM

Hi,

This is not true. California has changed their tax law. Vehicles need to be registered outside of California for 1 year or longer to avoid sales tax.

LEDZEP · 03-16-2007, 04:59 AM

Wow, it must suck to have sales tax.

IrvRobinson · 03-16-2007, 07:22 AM

Quote:

Originally Posted by BritinCA

Hi,

I am about to place an order for a 335i cabriolet for European Delivery - I live in Northern California. I heard that it's possible not to pay the CA sales tax by leaving the car in Europe for a certain period of time - is this true (I have somewhere to garage it in the UK if necessary, so that isn't a cost consideration)?

Also, does anyone know what the approximate build time is for a cabriolet for European Delivery?

Thanks v. much in advance.

Since the ED office has used up their May & June allocations, pick up in July or later shouldn't be a problem.As soon as you can decide on a pick up date,put in your pre reservation request,it's never too early.I have 4 orders for October pick up already.......

Brett · 03-16-2007, 10:22 AM

Quote:

Originally Posted by LEDZEP

Wow, it must suck to have sales tax.

Somehow, I feel we are still likely getting a better deal

Sales Tax is on average a small percentage. For my car it was only 6%, and had I bought it last year it would have only been 5%.

-Brett

Revlis · 03-16-2007, 12:52 PM

Quote:

Originally Posted by LEDZEP

Wow, it must suck to have sales tax.

Nah, Sales tax is the ONE FAIR tax far as I am concerned, and everything you pay in sales tax you can deduct from Federal income tax.

Property and unsheltered income tax??? Those are where the pirates live.

normtrum · 03-16-2007, 12:57 PM

Quote:

Originally Posted by Revlis

Nah, Sales tax is the ONE FAIR tax far as I am concerned, and everything you pay in sales tax you can deduct from Federal income tax.

Property and unsheltered income tax??? Those are where the pirates live.

I thought they changed that deduction last year, so you can no longer deduct sales tax. Am I wrong? If so, I need to talk to my tax guy.

klinkerklu · 03-16-2007, 08:35 PM

^yeah, I think that's true. I just did our taxes, so I should remember this, but I'm pretty certain you can't as of this year..

If you own a home, do an equity line or auto equity, and you can write off the interest you're paying at least...

normtrum · 03-17-2007, 01:28 PM

Quote:

Originally Posted by klinkerklu

^yeah, I think that's true. I just did our taxes, so I should remember this, but I'm pretty certain you can't as of this year..

If you own a home, do an equity line or auto equity, and you can write off the interest you're paying at least...

I just did that on the remaining balance on my e46. Smart thing to do.

LEDZEP · 03-17-2007, 02:18 PM

Not to be a butthead, but explain to me again how 0% tax isn't better?

Only certain taxes can be claimed on your federal return, and even then it is not a dollar-for-dollar deduction. Same for home equity loan interest (and this is not to say using those loans isn't sometimes a really good move). In addition to only a percentage of your interest being deductible, you are almost always going to be paying a sigificantly higher interest rate for the money. You would have to do an analysis to see whether it makes sense in the long term. Sometimes it does and sometimes it doesn't.

choatie88 · 03-23-2007, 11:57 AM

You can still deduct sales tax; it was passed at the end of December '06 so it actually doesn't have a separate line on the 1040 this year.

You can deduct either sales tax or income tax, but not both. Sucks for those of us living in states with high levels of both... :mad:

mags · 03-23-2007, 01:01 PM

Last time I checked, you are allowed to have the car in the EU for a max of 6 months not longer and according to the thread you need to have the car for a year in order not to pay sales tax.
Also consider the additional cost of registration and insurance

Insurance Schedule

Insurance period in months Cost to Customer
14 Days 0
1 225
2 482
3 894
*4 1435
*5 1886
*6 2336
*incl road use tax (4, 5, 6 months)
that is in Euros so as of now your 6 months insurance would be about 3000 USD.
That would eat up quite a bit of your savings

iatacs19 · 03-23-2007, 01:45 PM

Quote:

Originally Posted by LEDZEP

Not to be a butthead, but explain to me again how 0% tax isn't better?

0% is always better, what people often forget is that "deduction" does not equal "credit". It's more like a discount.

mr3cho · 03-23-2007, 02:32 PM

Quote:

Originally Posted by Revlis

Nah, Sales tax is the ONE FAIR tax far as I am concerned, and everything you pay in sales tax you can deduct from Federal income tax.

Property and unsheltered income tax??? Those are where the pirates live.

+1 income tax sucks! for most it will be their single largest expense.

hey if you get taxed on income and then pay sales tax on things you buy...isnt that double taxation??

Revlis · 03-23-2007, 04:30 PM

Still Writing off my sales tax this year. Don't believe there is an "Either" "or" in there unless they mean state income taxes can be deducted instead of Sales Tax.

We'll see...

03-10-2007, 02:08 AM	#1
BritinCA Future Cabrio Driver 0 Rep 1 Posts Drives: Subaru Join Date: Mar 2007 Location: San Francisco iTrader: (0)	European Delivery and Tax Savings Hi, I am about to place an order for a 335i cabriolet for European Delivery - I live in Northern California. I heard that it's possible not to pay the CA sales tax by leaving the car in Europe for a certain period of time - is this true (I have somewhere to garage it in the UK if necessary, so that isn't a cost consideration)? Also, does anyone know what the approximate build time is for a cabriolet for European Delivery? Thanks v. much in advance.
	Appreciate 0 Tweet Quote

03-16-2007, 12:51 AM	#2
Ninja Registered 0 Rep 3 Posts Drives: 325 convertible Join Date: Nov 2006 Location: Bay Area California iTrader: (0)	European Delivery & Tax savings in CA Hi, This is not true. California has changed their tax law. Vehicles need to be registered outside of California for 1 year or longer to avoid sales tax.
	Appreciate 0 Quote

03-16-2007, 04:59 AM	#3
LEDZEP Lieutenant General 419 Rep 12,276 Posts Drives: 2009 E70 & 2011 F25 Join Date: Jun 2005 Location: Area 51 iTrader: (0) Garage List 2011 X3 35i M Sport [7.62] 2009 X5 M Sport [0.00] 2007 328xi E90 [0.00] 2006 325xiT E91 [0.00]	Wow, it must suck to have sales tax. __________________ I think it is bad luck to be superstitious
	Appreciate 0 Quote

03-16-2007, 08:35 PM	#8
klinkerklu Respect my Authoritay 5 Rep 223 Posts Drives: 330xi ED Join Date: Nov 2006 Location: SF Bay iTrader: (0) Garage List 2006 330xi ED [0.00]	^yeah, I think that's true. I just did our taxes, so I should remember this, but I'm pretty certain you can't as of this year.. If you own a home, do an equity line or auto equity, and you can write off the interest you're paying at least... __________________ 330xi \| 6-speed \| Sparkling Graphite \| Sport Package \| iPod Adapter\| BlackLines\| F1 Pinnacle 35%
	Appreciate 0 Quote

03-17-2007, 02:18 PM	#10
LEDZEP Lieutenant General 419 Rep 12,276 Posts Drives: 2009 E70 & 2011 F25 Join Date: Jun 2005 Location: Area 51 iTrader: (0) Garage List 2011 X3 35i M Sport [7.62] 2009 X5 M Sport [0.00] 2007 328xi E90 [0.00] 2006 325xiT E91 [0.00]	Not to be a butthead, but explain to me again how 0% tax isn't better? Only certain taxes can be claimed on your federal return, and even then it is not a dollar-for-dollar deduction. Same for home equity loan interest (and this is not to say using those loans isn't sometimes a really good move). In addition to only a percentage of your interest being deductible, you are almost always going to be paying a sigificantly higher interest rate for the money. You would have to do an analysis to see whether it makes sense in the long term. Sometimes it does and sometimes it doesn't. __________________ I think it is bad luck to be superstitious
	Appreciate 0 Quote

03-23-2007, 11:57 AM	#11
choatie88 Second Lieutenant 9 Rep 205 Posts Drives: iX, Volvo XC90, McLaren 12C Join Date: Feb 2007 Location: Greenwich, CT iTrader: (0)	You can still deduct sales tax; it was passed at the end of December '06 so it actually doesn't have a separate line on the 1040 this year. You can deduct either sales tax or income tax, but not both. Sucks for those of us living in states with high levels of both... :mad: __________________ 335i E93 Monaco/Beige ZPP ZSP ZCW 322 507 6FL ZPD
	Appreciate 0 Quote

03-23-2007, 01:01 PM	#12
mags Second Lieutenant 11 Rep 262 Posts Drives: 2014 F32 435i Luxury Line Join Date: Sep 2006 Location: Indiana iTrader: (0) Garage List 2007 E92 335i [0.00]	6 months max on ED Last time I checked, you are allowed to have the car in the EU for a max of 6 months not longer and according to the thread you need to have the car for a year in order not to pay sales tax. Also consider the additional cost of registration and insurance Insurance Schedule Insurance period in months Cost to Customer 14 Days 0 1 225 2 482 3 894 4 1435 5 1886 6 2336 incl road use tax (4, 5, 6 months) that is in Euros so as of now your 6 months insurance would be about 3000 USD. That would eat up quite a bit of your savings
	Appreciate 0 Quote

03-23-2007, 04:30 PM	#15
Revlis Now With 33% MORE Sarcasm Free! 157 Rep 3,462 Posts Drives: M4 i3 X3 Join Date: Feb 2007 Location: Phoenix AZ iTrader: (0)	Still Writing off my sales tax this year. Don't believe there is an "Either" "or" in there unless they mean state income taxes can be deducted instead of Sales Tax. We'll see... __________________ A BMW is Just a Car, it doesn't make you smart, handsome, clever, better, cool, or wealthy.
	Appreciate 0 Quote