NSX as a gift?

[mateo91181]

Has anybody or does anybody know the rules about selling your nsx to a seller but saying it was a gift so that the buyer doesnt have to pay sales tax? Is this legit? I have read on the dmv website about it and it doesnt give any specifics. Thanks in advance.

 

[KooLaid]

It has to be between related individuals. Like brothers/sisters/parents/grand parents and possibly even aunt/uncle. I received in the past my 2nd truck as a gift from my sister and my 3rd truck as a gift from my brother, so I had to do the paper work. Real simple.

Now if you're just talking selling the car to someone else in general, make a simple bill of sale with the right amount to keep for personal record. But give the buyer the title with everything filled out, or just your name and signature, BUT leave the sale amount BLANK. Then he can just fill in what's "appropriate".

My CU let me do my own registering out of state, so I filled out the title with the "appropriate" sale amount, and paid about $300 total for everything.

 

[FeetFxr]

First of all I wouldn't put this on a public forum like this then do it. This could be used as evidence against you. I'm sure it varies by state, but here in Florida you can give someone a car as a gift and put that on the title when sold. The DMV frequently will send a letter to each party to verify it as a gift and require an affidavit stating so. Be very careful. This can always come back to bite you.

You should call your local DMV and anonymously ask.

 

[WillErickson]

I think different states have different rules, when I was 17 I bought a car but put it in Mom's name because I couldn't sign a contract for financing. When we later tried to retitle it in my name, we had to pay sales tax on the vehicle's current value. This was in Arkansas.

 

[KooLaid]

Since his profile states San Diego, and I'm from California, I assumed the buyer and seller are in california. BTW, those are the california DMV rules as of 4 years ago

 

[mateo91181]

I dont plan on doing anything if I find out it is illegal. If it legal, then I would think about it. I just wanted to get some ideas from people who have maybe done this in the past or who can give me some more details. I am going to try to call my DMV and talk to them. I just dont want anything hanging over my head. I would rather do things the right way.

 

[RSO 34]

The simple answer is that this is tax fraud if your state would otherwise require that taxes be paid on the transaction. Additionally, most, if not all states, require an affidavit-type statement from one or both of the parties attesting to the fact that it is a gift. Being less than truthful on that signing would add perjury to the tax fraud.

 

[mateo91181]

The simple answer is that this is tax fraud if your state would otherwise require that taxes be paid on the transaction. Additionally, most, if not all states, require an affidavit-type statement from one or both of the parties attesting to the fact that it is a gift. Being less than truthful on that signing would add perjury to the tax fraud.

Thanks RSO 34. You have answered my question. This is something I will NOT be looking into any further.

 

[LeftLane]

You are limited to a max of $12,000 per year in gifts in cash to any one person without triggering the gift tax. I'm not 100% certain this would apply to car transactions, but it's probably worth a phone call to a CPA before you try it.

 

[RSO 34]

This is not an issue of a "gift tax". It is a sales tax that would be "avoided" by falsely stating that the title transfer is not as a result of sale.

 

[btcog82]

State of Missouri; it doesn't have to be relative or anyone related. It's not legal or illegal really, it's a question of YOUR OWN ETHICS. The state can't accuse or assume you are lying when you say it is a gift, only you and the other individual truely know. Jus' my .02 from the law enforcement side:wink:

 

[mateo91181]

State of Missouri; it doesn't have to be relative or anyone related. It's not legal or illegal really, it's a question of YOUR OWN ETHICS. The state can't accuse or assume you are lying when you say it is a gift, only you and the other individual truely know. Jus' my .02 from the law enforcement side:wink:

From what I have found in California you can give a gift or transfer between family members. There are two different options with the DMV. But I think that even if I said it was a gift I or the buyer would still be avoiding the state sales tax which is illegal. If it truly was a gift to a non-family member then that would be different. I think atleast here in California its a little more than just my own ethics(which I do have :smile: ) but I am not an expert on the situation. I didnt bother calling the dmv regarding this as I know what the dmv would tell me. Trying to avoid the sales tax is a no-no. I have already told the potential buyer that I am not interested.

 

[DrVolkl]

State of Missouri; it doesn't have to be relative or anyone related. It's not legal or illegal really, it's a question of YOUR OWN ETHICS. The state can't accuse or assume you are lying when you say it is a gift, only you and the other individual truely know. Jus' my .02 from the law enforcement side:wink:

If one person is giving money in exchange for the vehicle, it's not a gift, it's a sale, and unless they're using cash that they saved up in their piggy banks, the money trail from the bank is not very hard to follow on a $30k car. Ever hear of an IRS audit?

 

[drew]

You commit at least two felonies:
1. Perjury on the "Statement of Facts"
2. Tax Fraud (Theft from State over $400)

You'll do 30 days + fines + payback for the Perjury and it is indefensible. Of course, in CA jails: 30 days is about 5-7 actual days.

I have read on the dmv website about it and it doesnt give any specifics.

(This info was two clicks from the main page.)

http://www.dmv.ca.gov/pubs/brochures/howto/htvr1.htm

<b>What Is a Family Member Transfer?</b>

A "family transfer" is when ownership is transferred to or from a:

spouse
parent
child
grandparent
grandchild
siblings

<b>How Is a Family Member Transfer Different from a Regular Transfer?</b>

There are three primary differences between regular transfers and family member transfers:

1. A regular transfer requires smog certification in most cases before the vehicle can be registered in the new owner's name. A family member transfer does not require smog certification (See Smog Certification section) if the vehicle is currently registered and the biennial smog inspection is not due.

2. On a regular transfer, use tax based on the purchase price of the vehicle is due at the time of transfer. A family member transfer is exempt from use tax with the exception of a transfer between brother and sister who are not minors. A brother and sister transfer is exempt from smog certification regardless of age, unless a biennial smog is required.

3. A regular transfer requires the department to reestablish the vehicle value (reclassify) to determine the appropriate Vehicle License Fee due. The license fee is based on the purchase price or current market value of the vehicle. A transfer between family members is exempt from reclassification of the vehicle value.

To establish eligibility for the use tax or reclassification exemption, be sure to let the department know that this is a family member transfer.

<b>What Do I Need to Do for a Family Transfer?</b>

The DMV will require:

The California Certificate of Title properly signed or endorsed on Line 1 by the registered owner(s) shown on the title. You will need to complete the new owner information on the back of the title and sign it.
A Statement of Facts (REG 256) for use tax and smog exemption, if applicable.
Transfer fee.
Odometer disclosure for vehicles less than 10 years old. Refer to Odometer Mileage Reporting.
Additional fees, such as registration fees, may also be due.

 

[NsXMas]

You can:

1) move to Arizona where there are no sales tax on private party car sales.

or

2) petition to change the law in California to repeal private car sales tax.

Good luck.