im interested in buying this car but the guy says that he doesn't "believe" that i should pay tax again for the car so he said he would transfer the car in my name as a gift (when we go to the insurance place etc.)... is there another reason why he would want to do this (to scam me etc.) other than the fact that I don't have to pay tax??
2007-12-13 14:33:24 · 7 answers · asked by Anonymous in Cars & Transportation ➔ Buying & Selling
tax evation
DONT do it
at least put down like $100
he wants to do it because he wont have to pay income tax on it
is he divorced? or is it not totally his car?
be careful with this
in MOST states, if you get a car gifted to you, and its NOT a family member, you have to pay tax on the value of the vehicle
AND
then you are committing tax evation
be careful
this is fraud on both of your sides
2007-12-13 16:00:23 · answer #1 · answered by Anonymous · 0⤊ 0⤋
be careful with that... the reason is, if it is a gift from someone other than family, or the price seems WAAAAAY to low for the vehicle type, the taxing authority has the right in most states to look up the value and tax based on that. Not all will, but if they do, it could be a nasty surprise.. perhaps a bill of sale stating.. sold for $200 as is... will usually avoid the issue.. if they question it, just say, yeah, car needed some major repairs, guy did not want to deal with it...
2007-12-13 14:48:15 · answer #2 · answered by Rafael P 4 · 0⤊ 0⤋
it is not a scam, however you should at least put down $1.00 for the sale price some states do not care about the "gift" status and base their tax off of fair market value for the car so (lets say you pay $100.00 for the car and the market value is $200 you end up paying tax on the $200 if the bill of sale shows $100, you pay tax on 100) so put down $1.00 and have the bill of sale for the same ammount
2007-12-13 14:40:32 · answer #3 · answered by yodamandemonoid 3 · 1⤊ 0⤋
As long as you have proof that he has transferred ownership to you you should be OK. I don't see any other reason someone would do that except to avoid paying sales tax. Make sure that he signs the title over to you.
2007-12-13 14:40:59 · answer #4 · answered by ? 4 · 0⤊ 0⤋
tell him to sell to you for $1.00, most states you DO have to pay tax when you go to the dmv to reg. they will add the tax on what you paid for it getting it as a gift works only if your related so get it for $1.00 then you will only pay .08 cents in tax
2007-12-13 14:41:21 · answer #5 · answered by greg s 2 · 0⤊ 0⤋
He should at least write down a small amount. Everyone I know writes down a smaller amount, but if the state suspects something they can come after you for fair amtket value.
2007-12-13 14:41:16 · answer #6 · answered by Barcadcadacada 6 · 0⤊ 0⤋
No, he just doesn't want to pay tax.
I can't think of anything he gains from this. He probably just hates the gummint.
2007-12-13 14:41:04 · answer #7 · answered by Anonymous · 0⤊ 0⤋