the car worth around $18,000. he said that he will just give it to me as a present. while i am thrilled, i don't know what should I do. I don't know if it'd be illegal if i just take it and will be able to change the title to me. would DMV ask me?? would i need to pay taxes for the $18,000.
Also, If i decide to buy if from it properly, what kind of agent do i have to go through? i'm just wondering. say, if i give him $18,000. and he doesn't hand me the car. then i will be screwed. so how does this work/?
2007-07-13 18:58:41 · 10 answers · asked by Deesa 2 in Cars & Transportation ➔ Buying & Selling
If he wants to give it to you as a gift, you are not liable for any gift taxes. He, however, should report it to the IRS on form 709 on his tax return next year since it's a gift valued over $12,000, though he will not actually pay a "gift tax" on it since there is a $1 million lifetime gift exemption. See here for a full explanation: http://turbotax.intuit.com/tax_help/the_gift_tax_turbotax/article
As far as transferring the title into your name, check with your local DMV as it may vary from state to state. I believe most states don't charge you anything for gift transfers other than the normal titling transfer fees. Here's a how-to for California: http://www.dmv.ca.gov/pubs/brochures/howto/htvr3.htm
If you want to actually buy the car from him, you just need to agree to the terms, print out a "bill of sale" and have both of you sign it. It is a legally binding document, though of course you would still have to take him to court if you had to enforce it (I really hope you're not dating a guy that would go back on his word!). Here's a free bill of sale that should be enforceable in any state: http://www.autocrisis.com/print_billofsale.html
2007-07-13 19:37:21 · answer #1 · answered by nevergonnaletyoudown 4 · 1⤊ 0⤋
If you're in Texas, you can no longer sell a car for $1.00. LOL. They have closed that loophole and you have to pay taxes on the Blue Book Value, not what you bought it for. You can gift a car to someone though. But why would you want to? You're just a girlfriend and he wants to 'give' you an 18,000 car? I smell a rat and lots more trouble than it's worth. But if you don't mind being bought then knock yourself out.
2007-07-13 20:01:25 · answer #2 · answered by Diana 4 · 0⤊ 0⤋
make up a bill of sale, you just have to type it up and both of you sign it when he gives it to you and the DMV accepts that as a receipt. The only thing you have to type is... Mr. Him sold Ms. Me a year make and model for $0 as is on this glorious day. Also that will be proof that he gave you the car if he decides to break your heart and try to take the car back, it will show that it is legally yours. Make sure you have it notarized at a local bank, police department or anywhere else you can. The taxes will either be $0 or their minimum. I have actually done this and paid no taxes!
2007-07-13 19:45:41 · answer #3 · answered by yepyep 3 · 0⤊ 0⤋
Whoever's name is on the title pays the taxes (for an $18,000, it'll be quite a bit!) You don't need to go through an agent. You need him to sign over the title to you and you need to register it in your name. Do it in the presence of someone you BOTH trust so neither one of you gets screwed. Once he signs the paper, swap with the method of payment... once you have the paperwork in your possesion, the car is legally yours (well, legally yours to register it in your name)
2016-04-01 03:34:55 · answer #4 · answered by Jennifer 4 · 0⤊ 0⤋
We are thinking about doing the very same thing. I would suggest searching online through your state DMV. There is some sort of transfer title to family members and gifts. Good Luck!!
2007-07-13 19:03:02 · answer #5 · answered by janedoh13 2 · 1⤊ 1⤋
If it's a gift, you *shouldn't* have to pay sales tax, however you would have to pay property taxes and registration fees when they are due. It would be worth checking with a knowledgeable party, such as a tax attorney or CPA.
2007-07-13 21:14:20 · answer #6 · answered by Anonymous · 0⤊ 0⤋
i think the easiest way is to have him sell it to you for a very low amount like $100, that way you only have to pay sales tax on $100 which would be cheap. but as far as property taxes go, i don't think there is any way around it.
2007-07-13 19:09:55 · answer #7 · answered by pimpjon 3 · 0⤊ 0⤋
He's your boyfriend. There's no commitment there, so don't accept the car as a gift.
If you buy the car, why would you buy it from your boyfriend rather than the seller? Sounds pretty skanky to me - like the car's hot.
2007-07-13 19:04:26 · answer #8 · answered by granniegrump 3 · 1⤊ 0⤋
Listen to pimpjon.Maybe you two can share the same cell.
2007-07-13 19:27:00 · answer #9 · answered by joystoy33 3 · 0⤊ 0⤋
i think u don't need to pay tax for any gift item.
2007-07-13 22:40:50 · answer #10 · answered by amit sarna 1 · 0⤊ 0⤋