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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Selling a car to a parent/tax question
I may sell my car to my mom in the spring. (under market value of course, Im a nice daughter!!)
Does she have to pay sales tax when she transfers the title? Im trying to read the form online, and it looks like she doesn't, but if anyone has done this before and can walk me thru it that would be great!!
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Posted 1/8/09 2:36 PM  |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Selling a car to a parent/tax question
Yes she will. There really isn't any way to sell a car in New York State without paying some tax.
You can't even gift a car anymore. They tax you at registration. If the title's owner changes they want to know why and they will tax you.
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| Posted 1/8/09 2:39 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: Selling a car to a parent/tax question
Posted by ave1024
Yes she will. There really isn't any way to sell a car in New York State without paying some tax.
You can't even gift a car anymore. They tax you at registration. If the title's owner changes they want to know why and they will tax you.
how do they determine the tax amount? NADA value?
if thats the case, i'll just keep the title in my name and let her drive it.
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| Posted 1/8/09 2:40 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Selling a car to a parent/tax question
Posted by Meaghan729
how do they determine the tax amount? NADA value?
if thats the case, i'll just keep the title in my name and let her drive it.
Yup. They use NADA, blue book, whatever.
Most people give a different sales invoice to the DMV with a lower sales price, but if the sales price is that much lower than the book value they simply tax you on the book value.
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| Posted 1/8/09 2:43 PM |
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Erica
LIF Adult
Member since 5/05 11767 total posts
Name:
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Re: Selling a car to a parent/tax question
when i sold an old car, the buyer asked that i write down $500 on the NYS form...That was fine, since that' sall i was offered as a trade in 
my dad gave my cousin an old car (1972 in 1989) and he said he sold it to him for $1. That was from NY to CT, so I'm not sure which state's laws that falls under.
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| Posted 1/8/09 3:12 PM |
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EmmaNick
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Member since 12/06 16001 total posts
Name:
*
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Re: Selling a car to a parent/tax question
Posted by ave1024
You can't even gift a car anymore. They tax you at registration. If the title's owner changes they want to know why and they will tax you.
When did that change?
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| Posted 1/8/09 3:15 PM |
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EmmaNick
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Member since 12/06 16001 total posts
Name:
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Re: Selling a car to a parent/tax question
Posted by ave1024
You can't even gift a car anymore. They tax you at registration. If the title's owner changes they want to know why and they will tax you.
When did that change?
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| Posted 1/8/09 3:15 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: Selling a car to a parent/tax question
I found a copy of the form on the DMV website and this is a part of it:
Was this transaction the purchase of a motor vehicle from
your spouse, parent, child, stepparent, or stepchild? Yes (enter 0 on line 4; no tax is due)
It appears to me that if its a parent, no tax is due! I'll call to double check though.
on the form it does say you can gift a vehicle, not sure of the tax implications though.
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| Posted 1/8/09 3:22 PM |
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Kara
Now Zagat Rated!
Member since 3/07 13217 total posts
Name:
They call me "Tater Salad"
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Re: Selling a car to a parent/tax question
Posted by Meaghan729
if thats the case, i'll just keep the title in my name and let her drive it.
Just make sure the car is properly insured for that. You could also be liable for anything that happens while she is driving.
ETF typo.
Message edited 1/8/2009 4:45:20 PM.
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| Posted 1/8/09 4:45 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Selling a car to a parent/tax question
Posted by Meaghan729
I found a copy of the form on the DMV website and this is a part of it:
Was this transaction the purchase of a motor vehicle from
your spouse, parent, child, stepparent, or stepchild? Yes (enter 0 on line 4; no tax is due)
It appears to me that if its a parent, no tax is due! I'll call to double check though.
on the form it does say you can gift a vehicle, not sure of the tax implications though.
Hmmmm that's news to me. I wonder how they verify this info.
Then I wonder why more people aren't trying to cheat the system by selling cars to their supposed "relatives". Or maybe they are and we don't know it.
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| Posted 1/8/09 5:19 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Selling a car to a parent/tax question
Ok I just did some research because I was curious.
You still can't "gift" a car to somebody without paying taxes.
However you can transfer the title to an immediate family member as Meghan said. I would definitely NOT tell the DMV you sold your mother the car. Just say you are transferring the title. Your mom can always pay you privately.
http://www.dmv.org/ny-new-york/title-transfers.php
I am still curious how they verify the family member is really family. Especially if there is a married name involved.
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| Posted 1/8/09 5:29 PM |
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nrthshgrl
It goes fast. Pay attention.
Member since 7/05 57538 total posts
Name:
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Re: Selling a car to a parent/tax question
My dad just gifted a car to me last week. No tax due.
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| Posted 1/8/09 10:10 PM |
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