Anyone ever trade cars with another person in California?

[Imported]

Anyone know how to do the use taxes correctly when there is a trade among two private owners? The car I'm looking to acquire is worth more than my own, but we're doing a straight trade of the vehicles. For example, mine could be worth $15000 while the other party's is worth $25000.

I found this on a CA government site concerning taxes.. but it doesn't really help me since there is an obvious difference in "worth" of the trade.

Are transfer by barter, exchange, and trade-in subject to tax?

Yes, the total value or consideration given to acquire tangible personal property is included in the amount subject to tax. In general, consideration includes cash, assumption of any loan, cancellation of a debt, value of property traded or exchanged, value of services bartered, and any other payment, valued in dollars, given to purchase the property.

For example, if you purchased a 45-foot sail boat with a selling price of $200,000 and you gave the seller $25,000 cash, assumed his $100,000 mortgage, and also traded your 36-foot motorhome worth $75,000, you would owe tax on the entire $200,000 purchase price (that is, the total value or consideration given to acquire the boat). No deduction can be taken for tax previously paid when you bought the motorhome

I still think it's BS that a vehicle is being taxed twice.. but apparently "gifting" isn't a legal option as we aren't related and a trade is considered as two separate transactions?

 

[MDE]

Sell the cars to each other for $1?

 

[Imported]

Sell the cars to each other for $1?

Then I'll get taxed later at market value.

 

[SyndromeOCZ]

Make the transaction out of state.

 

[NutBucket]

Market value is only what you put down when applying for a new title

Not like anyone will question it as long is it is within reason. What type of value are we talking?