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      07-05-2018, 12:22 PM   #1
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Thread no longer relevant. Thank you, please delete.
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      07-05-2018, 12:34 PM   #2
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Quote:
Originally Posted by COChris View Post
Looking at a big tax bill when I take delivery of the M2C in the next few months.

Has anyone here used the Montana license plate loophole to save on taxes?

I'm wondering what risk is actually involved — does anyone here have first-hand knowledge of potential negative outcomes of this strategy?
By "loophole" you mean tax evasion?

Georgia is cracking down on this specifically for Montana tags. Pretty big fine if you get caught.
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      07-05-2018, 12:50 PM   #3
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Sounds like you are asking for tax evasion advice.

Can't speak for Colorado, but I know a guy that got hammered in California. Wouldn't recommend.
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      07-05-2018, 12:54 PM   #4
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There is quite a bit of information on the topic via google, there are several companies that will set this up for you but it is not a freebee as it was in the past. You have to set up an LLC that owns your car and you pay fees to the county where the LLC is based, several Montana counties have established higher fees to gain revenue. Financially it likely doesn't make much sense unless your buying a car 200k or more because your going to pay someone to set this up, maintain it etc. Additionally you will have to set up a separate insurance policy under the LLC. If your financing the car you might have another challenge with that also.
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      07-05-2018, 02:31 PM   #5
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Quote:
Originally Posted by pz619 View Post
Sounds like you are asking for tax evasion advice.

Can't speak for Colorado, but I know a guy that got hammered in California. Wouldn't recommend.
Sounds like not worth the risk. Thank you.
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      07-05-2018, 02:36 PM   #6
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Do some research. Many use it. When I researched it, I believe I found that a judge had cracked down on people in Colorado, if I recall correctly. You'll find that most of the country's 918's are owned in Montana, interestingly enough. A tax bill for an M2 is relative - if you compare it to a $1mm car like a 918. Make an informed decision.
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      07-05-2018, 03:07 PM   #7
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It's un-american to evade taxes.
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      07-05-2018, 04:17 PM   #8
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The tax avoiders better not be of a certain party that loves to raise taxes. You choose to live in a high tax state and vote for your representatives. Pay your damn taxes people.
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      07-05-2018, 06:16 PM   #9
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Quote:
Originally Posted by ryem3 View Post
Do some research. Many use it. When I researched it, I believe I found that a judge had cracked down on people in Colorado, if I recall correctly. You'll find that most of the country's 918's are owned in Montana, interestingly enough. A tax bill for an M2 is relative - if you compare it to a $1mm car like a 918. Make an informed decision.
It's mainly done for Million Dollar cars because of the huge sales tax savings and the tab savings. It protects the asset because the car is under the LLC and not the individual.
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      07-09-2018, 11:36 AM   #10
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I'm all for using ethical/legal means to lower your tax burden, but when I see a supercar with Montana plates it makes me think the owner is a cheap douchebag that only bought the car for the attention
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      07-09-2018, 11:43 AM   #11
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Quote:
Originally Posted by HammerDahn View Post
I'm all for using ethical/legal means to lower your tax burden, but when I see a supercar with Montana plates it makes me think the owner is a cheap douchebag that only bought the car for the attention
And that differs from a supercar owner who paid the taxes? I don't see the difference? Either you think supercar owners bought the car for attention or don't. I guess I don't see how whether they paid taxes makes one more likely to have bought it for attention than not.

But I get that it's your opinion, albeit strange to me.
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      07-11-2018, 09:29 AM   #12
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Interesting thread.

I've always wondered what the lower limit for this would be.

In my high sales tax state, this strategy has held up in court. I'll definitely pursue it on my next large purchase, but hadn't really considered it on something like an M2. There's a few grand of savings there tax wise.
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      07-15-2018, 08:02 AM   #13
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Quote:
Originally Posted by Blipit_ View Post
The tax avoiders better not be of a certain party that loves to raise taxes. You choose to live in a high tax state and vote for your representatives. Pay your damn taxes people.

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      07-15-2018, 09:12 AM   #14
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Quote:
Originally Posted by Blipit_ View Post
The tax avoiders better not be of a certain party that loves to raise taxes. You choose to live in a high tax state and vote for your representatives. Pay your damn taxes people.
Lmao, because the other party has the moral high ground right now? Money is money. Doesn't matter what party your in. Although wouldn't be surprised if the vast majority are from that other party, if the one at the top is representative.

Both are terrible.
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      07-15-2018, 10:35 AM   #15
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Quote:
Originally Posted by Blipit_ View Post
The tax avoiders better not be of a certain party that loves to raise taxes. You choose to live in a high tax state and vote for your representatives. Pay your damn taxes people.
Let me confuse you more. I live near a very very liberal city in CO and was raised in TX.
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      07-15-2018, 10:47 AM   #16
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Sad part is evading taxes is very American. Corporations do it all day everyday by taking their $$$ overseas and to tax havens. Anyone who orders something online (depending on merchant) enjoys not having to pay state taxes too. It's systemic and needs to stop, but I don't for one second pretend it's uncommon. If everyone paid taxes (including corporations) taxes would be lower on the whole.
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      07-15-2018, 11:10 AM   #17
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Quote:
Originally Posted by Tag View Post
Sad part is evading taxes is very American. Corporations do it all day everyday by taking their $$$ overseas and to tax havens. Anyone who orders something online (depending on merchant) enjoys not having to pay state taxes too. It's systemic and needs to stop, but I don't for one second pretend it's uncommon. If everyone paid taxes (including corporations) taxes would be lower on the whole.
Re online ordering, not anymore. Supreme Court just ruled that states may enforce sales tax on internet sales to residents in their state even from non-resident corporations. So start expecting to see sales tax collected on all online sales from now on.

https://www.nytimes.com/2018/06/21/u...merchants.html
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