Tax question on a car

[cmross13]

@beat90tsi

It’s not “sales tax” it’s income tax. The 1099 will indicate ~$16,500 of additional income, but you weren’t paid money, you were given a car of that value. Even in the lower brackets I think you’ll owe at least $3k in additional income tax.

@PoisonousBeef

You will not pay the 6 or 7% “sales tax.” You will be taxed on the value of the car as part of your income. It’s considered previously untaxed income that you got as if you were being paid as an independent contractor.

dont you have to pay sales tax on a car when you transfer the title, regardless of how little you actually paid for the car?