Sales tax on a vehicle trade?

[AMCRambler]

I'm always looking at cars for sale on different forums and I see a lot of people looking to trade one vehicle for another. Say you trade somebody your car for their car straight up and no cash changes hands. Do you have to pay sales tax on the value of the new car when you go to register it? Technically it wasn't sold or bought it was traded. Anybody know?

 

[spaceman]

honestly, what do you think?

 

[woodie1]

Originally posted by: AMCRambler
I'm always looking at cars for sale on different forums and I see a lot of people looking to trade one vehicle for another. Say you trade somebody your car for their car straight up and no cash changes hands. Do you have to pay sales tax on the value of the new car when you go to register it? Technically it wasn't sold or bought it was traded. Anybody know?

It varies from State to State.

 

[Savij]

In Mass, they'll charge you blue book value or sale price, whatever is higher, when you register.

 

[Baked]

Have the owner put "gift" on the pink sheet.

 

[redgtxdi]

Biggest scam in the car business outside of auto repair.

Here in Kaleeforneeuuuhh, I've always wondered when/if the DMV will ever catch up on this one.

Can't tell you how many cars I've seen change hands for $100!! ($40K Escalade anyone?)


Nobody EVAARRR (well, ok, maybe not ever) puts anything more than 50% of the ACTUAL value of a car sold and even then, never bother to feed the IRS tax money because of it when they sell.......(unless it's dealer mandated).

Private party = no-brainer. All cars sold for $100 or "gift" and DMV/IRS get NO bonies for it.

Dealer = I have no idea and don't know if I want to know. Probably scammin' the DMV/IRS worse than private party for all I know.....LOL!!

Will there ever be a way to police this??

 

[spaceman]

Originally posted by: redgtxdi
Biggest scam in the car business outside of auto repair.

Here in Kaleeforneeuuuhh, I've always wondered when/if the DMV will ever catch up on this one.

Can't tell you how many cars I've seen change hands for $100!! ($40K Escalade anyone?)


Nobody EVAARRR (well, ok, maybe not ever) puts anything more than 50% of the ACTUAL value of a car sold and even then, never bother to feed the IRS tax money because of it when they sell.......(unless it's dealer mandated).

Private party = no-brainer. All cars sold for $100 or "gift" and DMV/IRS get NO bonies for it.

Dealer = I have no idea and don't know if I want to know. Probably scammin' the DMV/IRS worse than private party for all I know.....LOL!!

Will there ever be a way to police this??

yes,
ma rmv goes by either nada/or bluebook.
so you pay 5% on that amount no matter what you paid for the car(unless bos is over kbb)
yes, this state sucks for most things auto related.
excise taxes.
fee bonanzas
fuck this state!