What do you tell DMV you sold your car for????

redgtxdi

Diamond Member
Jun 23, 2004
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I've never really done it on anything expensive, but may be selling a car to a buddy & prolly lookin' at around $7K.

He wants me to put down $100!! I doubt the DMV has a "We know what you sold your car for last summer" police?? (LOL) but I wonder if any alarms could go off anywhere if things look too suspicious.

(Obvious reason I'm asking is that, in the used car market, this is what they base fees on etc. & I don't think anybody wants to give the DMV or state any more money than $0, eh?)

:D
 

redgtxdi

Diamond Member
Jun 23, 2004
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Well, OK, but why????

(I didn't have a good answer for him 'cuz I really don't know myself. But............. I don't think the DMV and IRS communicate on any level whatsoever, so who's to fear??)
 

venk

Banned
Dec 10, 2000
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I think anything under 10K slips under their radar. Of course if you put down you sold a brand new Mercedes for $5K, you might get some second looks.
 

DaveSimmons

Elite Member
Aug 12, 2001
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If ethics and morals have no influence on you, let fear subsitiute for conscience.

Yes, they notice when you pretend to sell for well below market value. The tax revenue is important to the state (now more than ever) so they have a strong interest in collecting.

There might also be large fines for such cheating to try to collect even more.
 

redgtxdi

Diamond Member
Jun 23, 2004
5,464
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Ya, but that's what's kinda' weird.

Notice everybody answering this thread doesn't really have a clue??????????

(Never thought about it b4, did ya'?)

I had this conversation a loooong time ago w/ my old man, & he was sure that the DMV & IRS absolutely *do NOT* communicate on ANY level whatsoever!!!

Thus, the reason that NO MATTER WHAT you put down on the back on the pink slip, you've never heard anything about not claiming that money as *income*. (Yes, you're actually supposed to claim when you've sold any *TAXED* property, but when's the last time you saw anybody file that SeaDoo, Yamaha, Mazda, etc. they sold, on their state taxes??)
 

Orsorum

Lifer
Dec 26, 2001
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If you're audited, you'll be held liable for the correct amount of tax, plus penalties and interest. CA BOE agents will be more than happy to speak with you if they find out you lied about any aspect of your taxes and fees due. (I'm thinking use tax here, I'm sure the DMV has a whole host of fees to levy as well, I am not acquainted with California's individual income tax so I cannot speak to that)
 

mugs

Lifer
Apr 29, 2003
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$100 for a $7000 car? Yeah, they'll believe that. Your friend is stupid.
 

EmperorIQ

Platinum Member
Sep 30, 2003
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Originally posted by: redgtxdi
I've never really done it on anything expensive, but may be selling a car to a buddy & prolly lookin' at around $7K.

He wants me to put down $100!! I doubt the DMV has a "We know what you sold your car for last summer" police?? (LOL) but I wonder if any alarms could go off anywhere if things look too suspicious.

(Obvious reason I'm asking is that, in the used car market, this is what they base fees on etc. & I don't think anybody wants to give the DMV or state any more money than $0, eh?)

:D

3500 is more realistic, him asking you to put 100 is a bit much, what does he have to hide?
 

deadlyapp

Diamond Member
Apr 25, 2004
6,638
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most dmv's go off a database of what cars are worth, similar to kbb. I bought my stealth for 5700, the lady put 5000 as the buy price, I was taxed for something like 6k because thats the going market value.
 

DAGTA

Diamond Member
Oct 9, 1999
8,172
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Originally posted by: redgtxdi
I've never really done it on anything expensive, but may be selling a car to a buddy & prolly lookin' at around $7K.

He wants me to put down $100!! I doubt the DMV has a "We know what you sold your car for last summer" police?? (LOL) but I wonder if any alarms could go off anywhere if things look too suspicious.

(Obvious reason I'm asking is that, in the used car market, this is what they base fees on etc. & I don't think anybody wants to give the DMV or state any more money than $0, eh?)

:D

I don't think this is the value they use when ascertaining your yearly registration fees. Instead, I believe they have tables they reference for car year, make and model.
 

Orsorum

Lifer
Dec 26, 2001
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Link

If you're looking for more in-depth information as to the California DMV website. I do not know California's tax code in-depth, nor would I provide any particular advice in this forum, nor would I provide any particular information to a person looking to commit fraud.

Seriously, just put down the correct amount, and suck it up. It'll save you time, energy, and money in the long-run.

A link to the California BOE wherein they explain what your responsibilities as a California resident are regarding sales and use taxes on vehicle transfers and their relationship with the DMV.
 

redgtxdi

Diamond Member
Jun 23, 2004
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In regards to whether you're supposed to claim it or not, I have no idea if it really matters. There is, however, a line in one of the gazillion tax statements that asks something like this......."Did you receive monies for the sale of personal property owned by you for any part of the tax year, blah, blah, blah".

As for BOE officers (I assume you mean state board of equalization?), I dunno. I sold a jetski a few years ago that I paid $7K for and that someone bought off of me for $5K and I put down $2,500. At that time, the guy just couldn't belieeeeeeeeve I wouldn't put down $500!!!

The very first car I ever bought, I paid $1K for and the guy told my stepdad to put down $200 and he wouldn't. (Didn't know jack back then). The guy said......."I'm tellin' ya', that's just the way people do it"..............This was back in 1985!!!!!!!

So to answer the skeptics, it's obviously been goin' on for a long time and I've yet to hear of anyone having the SBOE rap on anyone's door. ????
 

redgtxdi

Diamond Member
Jun 23, 2004
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Excuse the quick reply, but thought this was relevant......

(In an answer, or lack thereof to "MUGS'" question).........

snip from DMV site...............

Question: Do I owe taxes of any kind on the money I receive for the sale of my vehicle?

Answer: Contact your tax advisor..........End snip!!!

That's greeeeeeeeeeeeeeeeeat!!! Nice & VAGUE, eh??

Of course, they'll ramble on for 5 or 6 lines of text about...."What do I do with the license plate?" LMAO!!!

(Take that license plate.....................shine it up reeeeeeeeal nice....................turn that somb*tch sideways...................and shove it straight up your candy @$$)

:D (Sorry, couldn't resist.............only the friggin' DMV!!)
 

Orsorum

Lifer
Dec 26, 2001
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Originally posted by: redgtxdi
Question: Do I owe taxes of any kind on the money I receive for the sale of my vehicle?

Answer: Contact your tax advisor..........End snip!!!

That's greeeeeeeeeeeeeeeeeat!!! Nice & VAGUE, eh??
:D (Sorry, couldn't resist.............only the friggin' DMV!!)

You're still responsible for the correct and timely filing and payment of your taxes due.
 

d33pt

Diamond Member
Jan 12, 2001
5,654
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That used car sales tax is just wrong..i dont feel bad about cheating the dmv. when the original owner bought that car new, full tax was paid on the full price. now that it sold at a lower price..why should it get taxed AGAIN? that is some kinda scam as far as i'm concerned. I don't know how they get away with it.
 

Orsorum

Lifer
Dec 26, 2001
27,631
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Originally posted by: d33pt
That used car sales tax is just wrong..i dont feel bad about cheating the dmv. when the original owner bought that car new, full tax was paid on the full price. now that it sold at a lower price..why should it get taxed AGAIN? that is some kinda scam as far as i'm concerned. I don't know how they get away with it.

Oh, the joys of raising spending money for state and local governments.
 

psteng19

Diamond Member
Dec 9, 2000
5,953
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If you're gonna do $100, you might as well put it down as gift.
No one's going to believe you sold a $7k car for $100.