This is a multi-part message in MIME format.
---------------------- multipart/alternative attachment
hi i am a U.S. citizen from minneapolis minnesota who is looking to re-locate to manitoba. i would like to buy a car in canada and take it back with me to the U.S. until i move. what kind of tax is on a purchase like that when i cross the border? i know it's cheaper but how do i go about buying one and getting a loan without telling the dealer i am from the u.s.? thank you! JXXXX
================================
david ingram replies:
Being a suspicious individual by nature and having seen the original return email address, I wonder if this question is more of a test. The name on the return address is also the name of a well known Winnipeg and Steinbach, Manitoba car dealing family and it looks suspicious.
However, assuming that the question is a genuine plea for help, you have a problem.
No Canadian Franchise dealer is allowed to knowingly sell a car which is to be exported to the USA. You also have to be sure that the car you do buy will be qualify for US EPA (Environmental Protection Agency) laws.
It is a given that any car you bought in Selkirk, or Brandon or Portage La Prairie would NOT qualify for registration in California for instance. But then, most cars bought in Phoenix or Tulsa or Portland or Las Vegas would not qualify for registration in California either.
You will also need to arrange to have a MPH speedometer installed (dual is nice) if you are taking it south.
When you do get it to the border you will need to pay 2 1/2 % duty as a minimum plus any relative state taxes when you get to your state to register it.
Getting it financed will be a problem because the financing institution will not want the car leaving its jurisdiction although it can be done if your credit is good enough.
A cash deal would be easy. Buy the car and drive it to the border and do not tell the dealer anything.
The dealer can lose its franchise if it knowingly sells you a car that you are taking south.
Why not just keep whatever car you have and wait until your move to Manitoba. It will be easier.
On the other hand, if you really want to do it, try and arrange a line of credit (with an American Bank) that is not tied to the car. Than you have the money to pay for the car and can just drive it to the border.
I suggest that you talk to a Broder Broker on the US side and invest a few dollars in having them assist you with the importation to the US.
I am puttingthis out on a list in the hopes that another reader may come back with a better answer. I always welcome correctionsand suggestions.
David Ingram's US/Canada Services
US / Canada / Mexico tax and working Visa Specialists
US / Canada Real Estate Specialists
4466 Prospect Road
North Vancouver, BC, CANADA, V7N 3L7
Res (604) 980-3578 Cell (604) 657-8451
(604) 980-0321
New email to [email protected]
www.centa.com www.david-ingram.com
Disclaimer: This question has been answered without detailed information or consultation and is to be regarded only as general comment. Nothing in this message is or should be construed as advice in any particular circumstances. No contract exists between the reader and the author and any and all non-contractual duties are expressly denied. All readers should obtain formal advice from a competent and appropriately qualified legal practitioner or tax specialist in connection with personal or business affairs such as at www.centa.com. If you forward this message, this disclaimer must be included."
Be ALERT, the world needs more "lerts"
This from "ask an income tax and immigration expert" from www.centa.com or www.jurock.com or www.featureweb.com. Canadian David Ingram deals daily with tax returns dealing with expatriate:
multi jurisdictional cross and trans border expatriate problems for the United States, Canada, Mexico, Great Britain, the United Kingdom, Kuwait, Dubai, Saudi Arabia, Thailand, Indonesia, Japan, China, New Zealand, France, Germany, Spain, Italy, Russia, Georgia, Brazil, Peru, Ecuador, Bolivia, Scotland, Ireland, Hawaii, Florida, Montana, Morocco, Israel, Iraq, Iran, India, Pakistan, Afghanistan, Mali, Bangkok, Greenland, Iceland, Cuba, Bahamas, Bermuda, Barbados, St Vincent, Grenada,, Virgin Islands, US, UK, GB, American and Canadian and Mexican and any of the 43 states with state tax returns, etc.
---------------------- multipart/alternative attachment
An HTML attachment was scrubbed...
URL: http://www.centa.com/CEN-TAPEDE/centapede/attachments/99539f7b/attachment.htm
---------------------- multipart/alternative attachment--
What's Related