Did anyone ever GIVE you a car? If so, please tell me.

[TurboMinivan]

Whenever I buy a car private party, I always print out an official Bill of Sale (form TC-843) to present to the DMV when they charge me sales tax. Easy enough, right?

Without revealing too many details, a friend is about to give me a car. This would mean there is no bill of sale required. However, I am having flashbacks of horror stories--perhaps fabricated, perhaps not--about how the DMV will then arbitrarily assess a value to the vehicle and charge you tax accordingly. That sounds like a sticky situation I'd rather avoid. The anecdotal tales always say it is far better to have your buddy "sell you the car for $1" than to have him simply give it to you.

So, enough with the anecdotes and the old wives tales. Have any of you guys ever received a car for absolutely free? If so, how did you handle the transaction at the DMV? Should I actually go ahead and draw up a bill of sale showing a $1 purchase price?

 

[Shawn]

Ya, I have done this a few times. As far as the DMV knows I sold or bought the car for $100.00. To me, $1.00 is like says I'm lying. Also, if you don't sell the car for a value they will charge you sales tax for what they value the car at.

 

[BlueWolfFab]

I just registered the XJ today and put "200.00" on the title 'sale price' (seller left it blank) and the sales tax was $13. I'd at least put $100 and pay a $6 tax.

I didn't have a bill of sale and she didn't ask for one.

 

[Stephen]

I just registered the XJ today and put "200.00" on the title 'sale price' (seller left it blank) and the sales tax was $13. I'd at least put $100 and pay a $6 tax.

I didn't have a bill of sale and she didn't ask for one.

This. Pretty much every car I have ever bought has worked this way. Seller leaves the sale price empty and I fill in $100 or so. Only time I haven't done that is when a bank is involved.

 

[TurboMinivan]

As far as the DMV knows I sold or bought the car for $100.00.

Also, if you don't sell the car for a value they will charge you sales tax for what they value the car at.

Okay, so the tales are true.

I'd at least put $100 and pay a $6 tax.

This is what I will do.

Thanks, gang.

 

[mbryson]

I bought a camp trailer from my father-in-law for $1. I think I paid .06 tax?

 

[AaronPaige]

I'm in the same boat, my dad is giving me his old work car(coal mines are dirty many miners have a work car) I might be better of buying for cheap than paying taxes on a gift...

 

[kmboren]

I actually just just had a car given to me and I just place "gift." In the sale price place I do not think I had to pay sales tax on it. Just registered it. But I will have to check.

 

[Jesser04]

I actually just just had a car given to me and I just place "gift." In the sale price place I do not think I had to pay sales tax on it. Just registered it. But I will have to check.

this right here.

 

[TurboMinivan]

I actually just just had a car given to me and I just place "gift." In the sale price place I do not think I had to pay sales tax on it.

this right here.

Interesting.

In my case, there is no title--it has been lost. However, the car also has not been registered for over 14 years. This is actually a good thing--the Utah DMV has a specific process called Insufficient Proof of Ownership, and by going through a few simple steps and completing a few forms, I can have a new title generated in my name. I was only worried about car value and the whole tax proposition, but as I've read through this thread I feel it is definitely better for me to get a bill of sale showing $100 purchase price (which I can do very easily) than it is to just call it a gift and let the tax commission have its way with me.


Oh, and don't worry: I promise there will be a new thread on this project car in the future.

 

[johngottfredson]

I believe if the person at the DMV is so inclined, they can try and assess a tax value at blue book rates if they think the number you are putting as the sales price is bunk ($100 sales price on a $15,000 vehicle), even if you say it's a gift, they can try and get you for something, just like the tax man might try and make you pay income tax on a gift. Just depends if they wanted to be a horrible person. In Virginia they didn't believe my $1,200 valuation on my motorcycle and assessed me for the book value ($3,900). I had to fight that, the bike was pretty beat up and wasn't worth much more than what I told them.

 

[jeeper]

You can 'gift' the car. I do it. I put gift in the sales price. One time they said the person gifting the car to me was not closely related, and they were going to 'review' it. It was all true, so I didn't care. No problems.

 

[Cascadia]

I won't buy a car from anyone unless they are willing to leave the sale price blank. I'm not willing to pay sales on a vehicle that has already had sales tax paid on it multiple times. If they say no then it's a deal breaker and I won't buy it. I usually put somewhere from 50-300 $. I've never been questioned and y'all know how many vehicles I've been through.

 

[Caleb]

When I was registering my old Honda dirtbike for the street, I was talking to the lady about this. As mentioned above, if they believe the sales price to be too far off from actual value, they can charge you the valuation price instead. I can't say I've heard of them actually doing that, but it's certainly a possibility. If it's an older car, I think it's completely reasonable to put $100-$200 and they wouldn't;t really even think twice about it.

 

[Tonkaman]

I believe if the person at the DMV is so inclined, they can try and assess a tax value at blue book rates if they think the number you are putting as the sales price is bunk ($100 sales price on a $15,000 vehicle), even if you say it's a gift, they can try and get you for something, just like the tax man might try and make you pay income tax on a gift. Just depends if they wanted to be a horrible person. In Virginia they didn't believe my $1,200 valuation on my motorcycle and assessed me for the book value ($3,900). I had to fight that, the bike was pretty beat up and wasn't worth much more than what I told them.

I had this happen to me once. I ended up paying taxes on a much higher value than what I had paid for the truck.

 

[SAMI]

I just registered a 96 4Runner for $100 'sales price'. Dude at the DMV didn't bat an eye.

 

[BlueWolfFab]

Saw this meme on FB, it seemed fitting.

 

[TurboMinivan]

Saw this meme on FB, it seemed fitting.