I realize in advance this is more of a legal question than a car question, but I bet someone here has been in a similar situation.
Recently, I bought a non-running '04 Mazda Tribute off of a friend of a friend for scrap value. I was able to fix it rater cheaply. (Turns out that the plugs hadn’t ever been changed, and the resulting misfire partially melted the upstream cat, plugging the downstream cat.)
I bought it for $500, have $500 expenses, and want to sell it for $3700. Now, I’m aware of “curbstoning” laws against unlicensed used-car dealers, but there is a yearly (3 sales?) exemption for me…and my wife…and my son-in-law…etc. Still, I would have to pay sales tax of 7% ($35) on my purchase.
I had also thought about setting up a registered business in PA, versus continuing as a “D/B/A,” for legal and other reasons (mostly unrelated businesses). Would filing as a business get me that “sales tax exemption” that repair shops use at the parts store…and on sale of this auto? Might be worth my while, then, to do this now rather than later!