Trading cars, would this work to avoid taxes?
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iTrader: (12)
Joined: Nov 2002
Posts: 2,329
From: san francisco
Car Info: always changing...
Trading cars, would this work to avoid taxes?
Say my car is totally payed off and so is someone elses, couldn't we just add eachother to eachothers registration and then remove one person a little later, like a week or so?
or something along those lines...
I ask because I was thinking of giving my car to my mom and when I spoke to the DMV they said that I could just add her to the title if I owned the car outright.
this got me thinking that maybe the same thing could be done to trade cars as well without it costing thousands of dollars...
any thoughts on this?
or something along those lines...
I ask because I was thinking of giving my car to my mom and when I spoke to the DMV they said that I could just add her to the title if I owned the car outright.
this got me thinking that maybe the same thing could be done to trade cars as well without it costing thousands of dollars...
any thoughts on this?
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There's no need to add and remove multiple people from the titles, just sell them to each other for $0 at the same time, and write that amount on the back of the titles. I would imagine your local tax collection agency wouldn't be happy, but I can't think of why it would be illegal (though it very well could be, who knows).
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Joined: Dec 2002
Posts: 7
From: Princeton NJ
Car Info: 00 323i; 01 Boxster
It can vary from state to state, but in many states you can transfer cars or real estate to a family member without sales taxes or transfer taxes. You can probably sell a car to your Mom without paying sales taxes. You can probably buy her house without paying real estate transfer tax.
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