Forum Discussion
Generally you pay taxes on the agreed to sale price,"Bill of sale". However, there are times when the state decides how much you should pay on. Re: I bought a basket case motorcycle, (literally in boxes), for $50.00. When I tried to register it after months of re-constructing it, the state mandated it had a "fair market value", and I had to pay taxes based on that. The taxes exceeded the price I paid for the cycle. I would have better off leaving it stay junk.
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