I want to give her my old car, but we don't want to be stuck with the sales tax. Can I gift her the vehicle? I live in Michigan. I've looked on the Secretary of State website but can't seem to find the information I need.
2007-01-30 10:05:20 · 6 answers · asked by LolaCorolla 7 in Cars & Transportation ➔ Buying & Selling
You can't gift the car, you have to transfer the title to her. Even if its a no-cost transaction, the state will still charge you fees for title transfer and likely sales tax (based on the assessed value of the car, not what she paid for it i.e $0, $1, etc)
Then there's the plates, which you will have to turn in and she'll have to buy her own. Its not a donations, so you can't donate the car to her either, fyi.
The best thing to do is probably give her the car, keep it titled in your name, and have her pay you directly for the tax and insurance. She will still need her own insurance, so you can keep her on your policy. This way you avoid the state's fees and she gets a discount on car insurance since you probably get a multi-car discount.
If you don't want to keep her on your insurance, then you might as well transfer the title, you just can't gift it to her.
Your best best is calling your local dmv and asking them what specifically entails transferring a car to your daughter. ou may find you have special responsibilities you can fulfill to avoid the fees and taxes.
2007-01-30 10:11:39 · answer #1 · answered by Say 3 · 1⤊ 0⤋
No you must sell her the car and then transfer the title. But the good news is you set the price and even if it is just a dollar the motor vehicle agency will recognize the sale to a family member as legit.
2007-01-30 10:09:45 · answer #2 · answered by Rich Z 7 · 1⤊ 0⤋
these answers are bogus. You don't want your daughter driving on your insurance because if something happens like an accident, that could cause big problems. Don't donate it or gift it.....sell it to her for $1 and pay to change the title and insurance over.
2007-01-30 10:58:47 · answer #3 · answered by the_greatone 2 · 0⤊ 1⤋
Yes, you can do that. Just sign the title and put "Donation" in the sale amount field. This way, you won't be charged the sales tax.
2007-01-30 10:11:03 · answer #4 · answered by daango26 2 · 2⤊ 1⤋
Call local vehicle registration office for advice.
2007-01-30 10:10:16 · answer #5 · answered by MyrnRn 2 · 0⤊ 0⤋
I know where I live, you just turn the title over, and sign it over to whom ever you want. ~~~~
2007-01-30 10:13:57 · answer #6 · answered by Anonymous · 0⤊ 0⤋