Cal. Code Regs. Tit. 18, div. 2, ch. 4, art. 13, app 1
Current through Register 2024 Notice Reg. No. 52, December 27, 2024
I. Step One. Compute the Repossession Loss Per Records
| a. | Retail sales price | $12,000 | ||||
| b. | Taxable fees (i.e., doc/smog) | 230 | ||||
| c. | Total amount subject to tax | 12,230 | (a+b) | |||
| d. | Sales Tax (6%) | 734 | (c*.06) | |||
| e. | License Fees | 240 | ||||
| f. | Other non-taxables | 0 | ||||
| g. | Total non-taxable charges | 974 | (d+e+) | |||
| h. | Total sales price | 13,204 | (c+g) | |||
| i. | Down payment | 2,000 | ||||
| j. | Balance on contract | 11,204 | (h-i) | |||
| k. | Finance charges/accrued interest | 3,000 | ||||
| l. | Total contract value | 14,204 | (j+k) | |||
| m. | Payments received on contract | 2,100 | ||||
| n. | Balance on date of repossession | 12,104 | (l-m) | |||
| o. | Unearned finance charges | 2,750 | ||||
| p. | Net contract balance | 9,354 | (n-o) | |||
| q. | Value of repossession | 6,000 | ||||
| r. | Repossession loss per records | $ 3,354 |
II. Step Two. Compute the Taxable Percentage of Loss.
This is done by dividing the total amount subject to tax (line c) by the total sales price (line h).
12,230 / 13,204 = 92.62%.
III. Step Three. Compute the Allowable Deduction.
This is done by multiplying the taxable percentage of loss (step Two) by the repossession loss per records (step One).
92.62% * 3,354 = $3,106.47
Cal. Code Regs. Tit. 18, div. 2, ch. 4, art. 13, app 1