Falsifying the amount paid for a car on the title

[Kelemvor]

Hey,

I sold a car a week or so ago (this is in WI) and forgot to put the amount that I sold it for on the title when I gave it to the guy who bought it. If he puts a really low amount, to avoid paying taxes, and turns it in and someone catches it, can I get in trouble for that?

I know people that do it all the time but I just want to cover my ass.

In WI, you pay sales tax on the dollar amount that you put on the title when you file it to get the ownership changed over.

Worst case scenario, if he puts a low amount and someone actually checks it and calls me, and I say we paid $xxx which is different than what he put on the title, what happens? I didn't falsify anything since I forgot to fill it in, but I just want to make sure...

I tried searching google but didn't really find anything about this.

Thanks.

Update from down below:
This is something where I sold the car for $650 and he said something about putting $100 on the form. I'm not expecting any issues but just wanted to know what happens if someone really does check.

If someone asked me about it, I'd tell them $650 since that's what they really paid. It wasn't like this was a personal friend or anything so I'm not out to do anyone any favors.

 

[lxskllr]

No. Usually there's a minimum tax anyway, regardless of price. I doubt anyone check, or cares as long as it's reasonable. $1,000 for a 2010 Porsche might raise some eyebrows, but for anything normal, it's no big deal.

 

[Doublejr]

I think most states tax based on book value and not the value put on the title. I bought a car on the cheap last year and they charge tax on 3 times what I paid for it.

 

[Born2bwire]

I just bought my car back from my mother and had to fill out the tax forms. For my state, the tax is done based on the purchase price or fair market value of the car. But this only applies to prices or values over $15K, otherwise it is dependent upon the age of the car. So it may not matter at all and if it does, then they possibly should use the market value of the car.

 

[overst33r]

Disclaimer: I am in FL.

I had this issue with my last car. They compare the amount on the title to the average loan amount for the year/make/model of the car and if it is within 80% of that value, everything is good. If it does not fall into that range, the seller will get an affidavit asking to confirm the price paid for the vehicle. In my case it was having both of us (buyer and seller) sign the affidavit confirming the price on the title is accurate.

 

[BoomerD]

Hey,

I sold a car a week or so ago (this is in WI) and forgot to put the amount that I sold it for on the title when I gave it to the guy who bought it. If he puts a really low amount, to avoid paying taxes, and turns it in and someone catches it, can I get in trouble for that?

I know people that do it all the time but I just want to cover my ass.

Worst case scenario, if he puts a low amount and someone actually checks it and calls me, and I say we paid $xxx which is different than what he put on the title, what happens? I didn't falsify anything since I forgot to fill it in, but I just want to make sure...

I tried searching google but didn't really find anything about this.

Thanks.

Wisconsin seems to be pretty sensible about this. I've only dealt with it once...we gave a car to our son who was living there...we filled out the forms, the DMV employee (Onalaska office) asked a couple of questions...done without any hassle.

If you fraudulently list a lower selling price so the seller can save on his taxes, and IF you get caught...you may have problems, but unless he lists a stupidly low selling price, (as mentioned, $1000 for a 2010 Porsche) you should be fine.

 

[EagleKeeper]

Usually, book value (within reason).

If a very low amount (down to zero); the title should be transferred with a statement that it is from a family member to justify the price.

The people handling registration process determines if the price paid stinks.
If the stink is to strong; there can be a penalty impossed

 

[Kelemvor]

This is something where I sold the car for $650 and he said something about putting $100 on the form. I'm not expecting any issues but just wanted to know what happens if someone really does check.

If someone asked me about it, I'd tell them $650 since that's what they really paid. It wasn't like this was a personal friend or anything so I'm not out to do anyone any favors.

 

[BoomerD]

This is something where I sold the car for $650 and he said something about putting $100 on the form. I'm not expecting any issues but just wanted to know what happens if someone really does check.

If someone asked me about it, I'd tell them $650 since that's what they really paid. It wasn't like this was a personal friend or anything so I'm not out to do anyone any favors.

Next time, pay a bit more attention to the minor details...

 

[IceBergSLiM]

DMV usually applies a minimum based on fair market value. And no you can't get in trouble.

 

[Patranus]

Just call the DMV.

Don't know why people are so hesitant to call places these days.

 

[Kelemvor]

DMV usually applies a minimum based on fair market value. And no you can't get in trouble.

In WI, you pay sales tax on the dollar amount that you put on the title when you file it to get the ownership changed over.

 

[IceBergSLiM]

In WI, you pay sales tax on the dollar amount that you put on the title when you file it to get the ownership changed over.

I doubt that, everyone would just put $1.00

 

[HybridSquirrel]

No. Usually there's a minimum tax anyway, regardless of price. I doubt anyone check, or cares as long as it's reasonable. $1,000 for a 2010 Porsche might raise some eyebrows, but for anything normal, it's no big deal.

When I "bought" a car from my dad, I paid him $1 for a 2002 S2000. The people at the DMV thought I was fucking crazy, till they saw it was my dad I was buying it from. What happened was that they had a tax rate for what the blue-book value of the car was or maybe the "fair market value", rather than the actual price of the car. Or it was a flat-tax rate if it was below a certain dollar amount.

Best part was that he actually made me give him a dollar.

 

[manimal]

Protip. Always fill out a title completely and DATE it when selling a vehicle. Liability legally can entangle you in a very expensive mess otherwise.

 

[Patranus]

I doubt that, everyone would just put $1.00

Wonder what the punishment for filing a fraudulent official government document is in Wisconsin.

 

[Kelemvor]

Wonder what the punishment for filing a fraudulent official government document is in Wisconsin.

Hence the reason for this post in the first place...

 

[SillyOReilly]

When I "bought" a car from my dad, I paid him $1 for a 2002 S2000. The people at the DMV thought I was fucking crazy, till they saw it was my dad I was buying it from. What happened was that they had a tax rate for what the blue-book value of the car was or maybe the "fair market value", rather than the actual price of the car. Or it was a flat-tax rate if it was below a certain dollar amount.

Best part was that he actually made me give him a dollar.

You should have had your dad gift you the car, dumbasses.

 

[waffleironhead]

I doubt that, everyone would just put $1.00

Thats why they check on the price. If its way out of line with nada you are going to get dinged.
For private transactions you could under report the price you paid by a margin and save some green, but you need to be prepared to defend the price or be charged with fraud.

10,000 car tax =550
lie and say
9000 car tax = 495

The question is, do you really want to rick fines and charges for $55 in savings?

 

[Patranus]

Hence the reason for this post in the first place...

Just call the DMV. You could have solved your problem an hour ago.

 

[Kelemvor]

I doubt that, everyone would just put $1.00

Section D, page 3.

http://www.dot.wisconsin.gov/drivers/forms/mv1.pdf

 

[Born2bwire]

You should have had your dad gift you the car, dumbasses.

Last time I did that my parents complained because the taxes were higher than charging $1.

 

[IceBergSLiM]

Thats why they check on the price. If its way out of line with nada you are going to get dinged.
For private transactions you could under report the price you paid by a margin and save some green, but you need to be prepared to defend the price or be charged with fraud.

10,000 car tax =550
lie and say
9000 car tax = 495

The question is, do you really want to rick fines and charges for $55 in savings?

how do they check? How do they have the man power to check? This doesn't sound right.

 

[JulesMaximus]

Thats why they check on the price. If its way out of line with nada you are going to get dinged.
For private transactions you could under report the price you paid by a margin and save some green, but you need to be prepared to defend the price or be charged with fraud.

10,000 car tax =550
lie and say
9000 car tax = 495

The question is, do you really want to rick fines and charges for $55 in savings?

Yeah, it's not worth the risk. Just put what you're selling the vehicle for ont the title and the bill of sale.

 

[SillyOReilly]

Last time I did that my parents complained because the taxes were higher than charging $1.

Yea well you don't gift a car with value above your states tax limit. (Or is it fed, I'll make sure when the time comes)

I think it's 11K in NY, so when my cars value drops below that I can gift it to my mom without tax burden.