Will the DMV accept a car sold for $1?? - Update: ANSWER FOUND!!!

[fonzinator]

If someone sells you a car for $1 and you write this on the car's title as the transaction price, will the DMV accept this?? Would you only have to pay sales tax on that $1 instead of what the fair market value for the car is?? Anyone know?

Update:
FYI...I checked with the Minnesota DMV on this. Several of you who replied to this thread were correct. They will accept the car as a gift and excuse the excise tax IF it is given from a parent to a child. The parent must write gift on the title and that's it! So boomshakalaka...I'm savin a nice chunk of change! Thanks for all your replies!

 

In ct, no, they will look up the book value and charge you tax on that, then they will red flag you for an audit.

 

[isekii]

what if it was just given to you ?

pass down the family or such ?

would you still be charged teh book value ?

lets say my mother wants to leave me the family mini-van

 

[StageLeft]

Car registration is based on book value or if you believe it's much lower I believe you can get an official appraisal done and it will be based on that.

 

what if it was just given to you ?

pass down the family or such ?

would you still be charged teh book value ?

lets say my mother wants to leave me the family mini-van

You fill out a gift transaction waiver.

 

[Chris A]

In California you need to say it was a gift to get the lowest rate. I am pretty sure they will adjust it to a minimum rate that is set up for just this type of circumstance.

 

[notfred]

90% of privately sold cars in california sell for $100 or less, as far as the DMV knows.

 

[GroundZero]

most states tax on the value of the vehicle now days, but if you were to put it as a gift then i believe the tax is waived.
i know this is true in washington state as i did it earlier this year and wasn't taxed.

 

[HomeBrewerDude]

Wisconsin allows for gifted vehicles to be non-taxable

 

[fonzinator]

So this obviously varies from state to state. Hummm....I hope Minnesota will let me do this.

 

[hdeck]

Originally posted by: notfred
90% of privately sold cars in california sell for $100 or less, as far as the DMV knows.

lol

 

[rh71]

Yes, GIFT.

 

[jemcam]

I traded a car back and forth between my family for several years. In Florida, you had to have a signed affidavit stating the car was a gift, but the state would only accept it if you were giving the car to a family member.

Each state is different.

 

[Shaka]

my dad was warning me about giving cars as gifts. if you don't sell the car to the person, then you are liable for anything that happens to the car. so at the very least, sell it for $1 and all your liability is gone. dunno if it's true or not.

 

[fonzinator]

Bump for answer in original post.

 

[Spac3d]

Originally posted by: fonzinator
If someone sells you a car for $1 and you write this on the car's title as the transaction price, will the DMV accept this?? Would you only have to pay sales tax on that $1 instead of what the fair market value for the car is?? Anyone know?

Update:
FYI...I checked with the Minnesota DMV on this. Several of you who replied to this thread were correct. They will accept the car as a gift and excuse the excise tax IF it is given from a parent to a child. The parent must write gift on the title and that's it! So boomshakalaka ...I'm savin a nice chunk of change! Thanks for all your replies!

:Q

 

[The Stigenator]

when my brother got rid of his toyota tercel (that i drove) it was given for 70 bucks I think.. or maybe it was for 0$.. not sure.. basically they waived the diag fee.. there was a guy at the dealership who needed a car, so the title was transferred to him and he would fix it up (he is a mechanic) and use it..

as far as I was concerned the car was dead since it threw a rod. The wreckers wanted 50 bucks for it, and the charity organisations (the two that i called) of which one didnt want it, the other said it would take a month before they pick it up.. god knows why that long.

 

[Linflas]

We used to be able to do this in Virginia but they finally wised up and changed the law so there is a minimum you must pay no matter what the amount of the sale is.