Tax loopholes that allowed individuals to shield high-value assets—such as luxury vehicles—from state taxation by registering them under out-of-state business entities have been closed. Authorities in California have tightened enforcement, targeting schemes where owners listed cars under Montana LLCs to avoid local tax obligations. The move reflects broader efforts to crack down on creative but legally dubious methods of tax evasion. Those relying on such strategies may now face scrutiny and potential penalties.
The days of using a Montana LLC to hide an expensive car from California’s taxman are over.
