Is sales tax owed on leased vehicle declared a total loss in Texas?

already exists.

Would you like to merge this question into it?

already exists as an alternate of this question.

Would you like to make it the primary and merge this question into it?

exists and is an alternate of .

Sales tax is applied at the point of sale when you make your purchase. They have nothing to do with a loss that occurs at a later time. So if you never paid those sales taxes then you would still owe them.

For example you buy an item and are required to pay the sales tax at the point of sale, Six months later the item is lost or stolen. Your sales tax was already assesed and collected so it has no bearing on your loss nor on your claim and you can not collect the taxes back from your insurer in a claim.


Good try Insur - but the problem is the one asking is - well ignorant and throwing terms around trying to sound not as much so!

Sales Tax is part of the capitialized cost of the item or in some States (and financing options) applied on each payment. In either case it is not "owed", having been paid at purchase by the company one is leasing the item from, or applied to lease payments - which would discontinue at time of loss.

In no case does the any amount owed change or have any influence on the value of what ever it is that is "a loss". The amount lost is the amount of value of the item totaled - whether you paid, what is to be paid makes no difference...just like to the next buyer it would make no difference.

What you owe can make a difference to the amount of equity, gain or loss you end up with. That is the amount of basis you have, or the amount above or below the amount you still owe or paid. So if you owed the tax, like if you owed any amount you borrowed, before the loss, you owe it after...the proceeds of the insurance (or the amount you have to pay off) does not change because you now don't have the item.
40 people found this useful

What happens when your vehicle is declared a total loss and you owe more than what the vehicle is worth?

Answer . \nOk - There are a few things that may very well effect the outcome and answer to your question. I am an Insurance Adjuster in CA, NV, and CO. I am by no means an expert on the entire nation. Just a Few disclaimers\n1. Every state is different - some have similar Laws, but you should als (MORE)

Do you pay sales tax at lease signing?

In Nebraska sales tax is on the payment so you dont pay the tax upfront like on a "buy" you would pay the sales tax each month i.e. pmt $300 tax 7%=$21.00 your pmt $321.00 with no up front tax

You live in Texas. If you buy a vehicle from a private seller do you pay sales tax when you get it registerd If so how do they determine what amount to tax you on They have no idea how much you paid.?

Yes, there is a sales tax of 6.25% on all purchases. You must provide a bill of sale with the car VIN, the condition of the car, and the purchase price as well as the signature of the seller and buyer. You will then pay taxes on that amount - but Texas does have a min tax value for the car which is (MORE)

Can a deceased person in Texas be sued for the return of a leased vehicle?

Answer . Yes, the estate can be required to return a leased vehicle according to the terms of the lease. If you read the fine print, it's there. Do you think that the vehicle should remain the property of the estate when it was only leased in the first place? That's the idea of a lease, the vehi (MORE)

What happens if you have no insurance on a leased vehicle and it is totaled because of your fault?

What will likely happen is that you will receive a very large bill, for which you are responsible from the lease company. Failure to pay the bill or negotiate a satisfactory compensation agreement with the lessor can result in a Suit being filed against you and a possible judgment attaching to other (MORE)

Do sales on a profit loss statement include the sales tax?

Answer . It shouldn't. Collections of sales tax results in a current liability, as the funds collected are supposed (stressed VERY heavily) to be remitted to the state. Some states give a credit of 1% or so of the collections as compensation for collecting, remitting and reporting sales tax colle (MORE)

In Texas do you pay sales tax on a vehicle if you are handicapped?

. TITLE 34 . PUBLIC FINANCE. PART 1 . COMPTROLLER OF PUBLIC ACCOUNTS. CHAPTER 3 . TAX ADMINISTRATION. SUBCHAPTER F . MOTOR VEHICLE SALES TAX. RULE §3.84 . Exemption for Orthopedically Handicapped Person . (a) Definitions. The following words and terms, when used in this section, s (MORE)

What about sales tax from purchase of new vehicle?

Sales tax is typically collected by the dealer when you purchase the car. There are 5 States that do not charge sales tax on vehicle purchases: Alaska, Delaware, Montana, New Hampshire, and Oregon. If you buy a vehicle from a different State other than your own, then there are a few ways to hand (MORE)

What is sales tax in Texas on used car?

Answer:. Sales Tax in the state of Texas is 6.25% of the purchase price. Title, licence, and registration will be extra. There is also a new $5.00 deputy fee that the state is collecting.

What is the sales tax of Texas?

The state sales tax in Texas is 6.25%. Cities, counties, transit authorities and other "public" authorities may may impose sales and use taxes up to 2% in addition to the state tax, capping the total combined sales tax at 8.25% for any location within the state.

What is Texas sales tax rate?

The Texas sales tax rate is 6.25%; however, local jurisdictions can add as much as 2%, which makes the maximum sales tax rate of 8.25%. Look in 'Sources and related links' below to find the rate in a specific city.

What persent sales tax does Texas have?

Texas has a constitutionally mandated maximum sales tax of 8.25%. Individual counties are allowed to set their sales tax rates wherever they like, but cannot exceed the 8.25% cap.

Do you have to pay sales tax on a vehicle when moving from Alaska to Texas?

If sales tax was paid in Alaska, you won't pay it again in Texas. But you will have to pay "registration fees" in the new state, & good luck getting that partial refund from the state you are moving from. It could happen... with persistence. I recently purchased a used vehicle in Florida and needed (MORE)

How can you buy a vehicle out of state in New Hampshire tax free and not pay sales taxes when I bring it back to Texas?

You can't, if you're a Texas resident. You automatically owe sales and use taxes on any goods you purchase for delivery or use in Texas as if you had purchased it locally. If you or the goods qualify as tax-exempt for some reason locally, the same exemption applies if you buy it elsewhere. As a g (MORE)

What will you owe in capital gains tax on the sale of your rental property?

You will NOT know the correct amount until you have completed your income tax return correctly for this purpose. When you sell residential rental property you are subject to tax on your gain. Some of the gain might be ordinary and some of the gain will be capital. Any depreciation recaptured is taxe (MORE)

Are taxes owed on the profit or gain from the sale of a car?

Any gain or profit from the sale of a car is taxable and reported as a capital gain on Sch D of IRS form 1040. It is usually taxable on most state and local income tax forms. If the the taxable income reported on the federal return is transferred to the state/local tax form, then there is no need to (MORE)

How much taxes owed on 2000 lottery win in Texas?

about $500 ans It is taxed just like any other ordinary income. Therefore how much anyone pays depends on that persons own individual tax situation. No 2 people commonly have the same one and it may vary from 0 to some very high percent for the very wealthy who have expended all possible tax b (MORE)

Should you cancel your auto insurance after an accident if your vehicle has been declared a total loss?

Often, cars are totaled because the cost of repairs exceed a statutory maximum of their actual cash value, thereby requiring the insurer to total the car. Sometimes, the car is repairable and the insured wishes to keep the salvage and have the car repaired. In that case, a "rebuilt" or "salvage" tit (MORE)

What are the journal entries for the sale of a vehicle at a loss?

Answer: Assuming the vehicle is sold for 1,500 cash, the cost of the vehicle is 10,000, and that accumulated depreciation is 9,000: The journel entry is a debit to 'Cash' for 1,500, a credit to 'Vehicles' for 10,000, a debit to 'Accumulated depreciation vehicles' for 9,000, and, a credit to 'Gain (MORE)

Is there sales tax on signage in Texas?

It depends on the transaction and could be taxable in one situation and tax free in another. Please elaborate on your question as much as possible so that I can answer. For example; I purchased a sign from an individual that installed it on a 10 foot pole secured to the ground with cement. The prope (MORE)

Can you lease your vehicle to someone if you still owe for it?

Provided it is not prohibited in the loan contract, probably. Keep in mind that the lender still holds lien on the vehicle and you are still obligated to pay the note. Should payment cease, the vehicle is still in all likelihood available for repossession, and the fact that another person holds it w (MORE)

What is the sales tax in Beaumont Texas?

The total sales tax in Beaumont, Texas is 8.25%. 6.25% goes to the state, .5% goes to the county of Jefferson (reporting code 4123002), and 1.5% goes to the city of Beaumont (reporting code 2123011).

What is the sales tax on Texas?

The Texas state sales and use tax rate is 6.25% , but localtaxing jurisdictions (cities, counties, special purpose districts,and transit authorities) may also impose sales and use tax up to 2%for a total maximum combined rate of 8.25%.