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

[AdamSnow]

It doesnt matter what you write down - he will pay taxes and everything on what the car is worth in the black book.

 

[Muse]

Originally posted by: DaveSimmons
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.

What's the deal? They collect sales tax on a private party selling their car? Or is the poster concerned about the registration fees? Either way they are scamming if they are lieing, BTW.

 

[Muse]

Originally posted by: Orsorum

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.

I can see a point there. If it changed hands 7 times they'd get tax on the car 7 times. Seems kinda screwed up.

 

[vi edit]

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.

That sums up my thoughts. I hate getting double dipped on taxes. That's the inner libertairian in my crying out.

 

[Demon-Xanth]

In California, the buyer is the one who writes it down. Not the seller. And if the car is a gift to anyone outside of your immediate family, you pay tax on it's value.
<-- payed $15 tax+$15 transfer fee on a car given to him (stated the value at $200)

 

[Toasthead]

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?)

In CA they go off of KBB, so it doesnt really matter

 

[gigapet]

you can sell a car for whatever you want. You can gift a car also. who friggin cares.

 

[kotss]

The seller also makes out in these kinds of situations. Because private party selling is different. If the purchaser in order to avoid paying higher taxes wants a bill of sale for lower than what they actually paid, could get stiffed in the long run. What if the car has sonething wrong with and decide to sue the ower for the cost of the car. You can only claim up to the amount you legally specified. The owner makes out in that case.
It has happened to a relative of mine.

 

[redgtxdi]

I think the sentiments are 'in kind'.............

Everybody thinks it's screwed to double, triple, quadruple a piece of personal property that's already been sold & taxed fully once, but there's not much anybody can do about it!!!

Kinda' sucks if you ask me!!!

Maybe we should get rid of the DMV altogether???

Just let mfgrs' create (within their own companies) a small division that keeps track of VIN's, engine #'s, etc. to keep in stride w/ newer companies on the market also keeping track.....(i.e. equifax, carfax, etc.)......then we can get the state out of it altogether.

But the state (& devil's advocates) would say, "Oh, but we can't do that, the state has to have a handle on all that. It's uhhhhh........it's uhhhhh......necessary!"

In fact........I've always loved how a vehicle is taxed based on its value. WTF???? That has absolutely NOTHING to do w/ the amount of work it takes the state to keep track of that particular vehicle........(paperwork is the same for a Yugo as it is for an Escalade)..........nor does it account for how much road abuse caused by that vehicle that the state needs to do repairs for.

???? IOW, there's a whole lot of things wrong with the whole DMV thing!!

 

[slag]

Originally posted by: sharkeeper
Four words:

notarised bill of sale

If not, they get out the book and rape you.

Four words:

Not required in many states.

Ok, thats 5, but i digress. I sell about 5-6 cars a year. Here in Kansas, sales tax is based on actual sale price of the vehicle, so the buyer wants people to say I sold it for less.

 

[bmacd]

If you're willing to commit fraud at the DMV, might as well just have your buddy say he bought it from his step dad (thus the different last names). Treat it like a gift.

-=bmacd=-

 

[Kyteland]

Originally posted by: DaveSimmons
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.

Illinois chasing tax money from online cigarette purchases

This is exactly why you shouldn't put it down for $100.

 

[Shadowknight]

As a general rule, you don't report income unless you're actually making profit on what you sell. For example, garage sales aren't expected to report income because everything is sold at below the original cost; it's a loss, NOT a profit. There has to be gain involved to generate income. Alternatively, if you sell something of significant value for less than the market rate, the difference is considered a "gift". You are allowed to make gifts of up to $11,000 to individuals (apiece, not collectively) each year. Any amount greater than that requires the giver/seller to pay a gift tax on the excess past the $11,000, NOT the recipient.

Things may vary with vehicles involved, but that's generally how it works.
*Edit* I'm referring to federal tax rules only. State tax rules vary, of course.*Edit*

 

[labgeek]

Originally posted by: redgtxdi
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!!!

Ever notice that people who claim that other's don't have a clue, themselves don't have a clue..
http://www.epic.org/privacy/databases/irs/irs_compliance_2000_notice.html

Internal Revenue Service will develop and maintain database and
retrieval systems accessed through automated local area networks. The
purpose of these systems will be to combine information from sources
inside and outside the IRS, such as motor vehicle data,
...
any state's Department of
Motor Vehicle (DMV), Credit Bureau information, real estate ownership
information, and commercial databases.

BTW, in Louisiana the DMV could and sometimes would other times not, ask for documentation if the bill of sale came in signifigantly less than the NADA value (they don't use KBB down there - doubt many do). You had to prove the reason the car was worth less than their book said... One way was to get a couple of mechanics to give estimates for repairs.