SengTC3

I'm looking to trade my tC for another tC here. I have a quick question about transfer of title. I'm trying to keep the cost minimal as possible. Instead of selling I want to "gift" the car, can I put the value of gift any value, like lets say $0, or Do I have to put like $18k. If it's a gift will it still be taxed? If not, what if me and the other trader both "gift" our cars. Thanks for peeping this thread.

SengTC3

OR if I'm taxed on the vehicle, can I "sell" him the car for $1?

1fastscion

If you gift the car you dont have to put a value on it. U just have to pay the title transfer fee which is 15$. You dont get taxed either.

SengTC3

If I put x amount for the value of gift than still no Use tax?

1fastscion

I don't think so You can put its worth 10$ it doesnt matter.

SengTC3

Thanks man, thing was frustrating me. I was just comparing it to Christmas. If I give someone a gift I don't tell them how much it's worth and I don't pay taxes cause of it, than why can't it apply to cars?

Trivecta

iTrader: (1)

Yayyy, good to know.

I also got a question, I have a unsettled ticket, if I switch titles, the ticket stays with me and not the car right?

SengTC3

I'm not sure about that one. I went to the DMV today about my pink slip. The lady said I can just fill out the form for a transfer of duplicate pink slip.

theoneandonly

I just found out that if you "gift" a car to someone, the person you give it to will have to pay tax on it. It is viewed as income when it is a gift.

SengTC3

Damn really? I was afraid of something like that. Even if I do it as a sale, they would still have to pay taxes huh?

Trivecta

iTrader: (1)

are we able to set the value of the gift?

SengTC3

yeah, but imma call the DMV tomorrow. I dont see why they should get so much money off of this

SengTC3

damn trivecta, i don't know anymore about this, i just talked to my homeboy and he says theres kind of no way out of the fee, i'm going to call dmv 1 more time tomorrow though

theoneandonly

The way you get around this is when you do the deal, put that you sold it for like $1-whatever amount you want. this way it isn't viewed as income and they will only have to pay for the title transfer and registration.

Trivecta

iTrader: (1)

So we're allowed to gift/sell the cars for $1? Its not like, illegal or anything?

Seng lemme know what the DMV says when u call em....

RockBlocker

Cali is whacked...You dont even get a tax credit when trading a car in....

SengTC3

What if I put the sale value at lets sat $2000? just to be somewhat realistic and tell them the engine is blown and car needs repairs due to hydrolock... estimated vaule of repair would be $8.000 and that is why i'm selling at $2000?

SengTC3

So what if he does the stated above, so I would have to pay the $180 use fee, and I gift my car to him so his would be exempt free? Can it work like that, cause i have the transfer title form in front of me, if we do 2 gifts i think they would be suspect and know that it's a trade. In the gift portion it says no individual trade. Will this plan work or will it flop? I did no reread what I wrote sorry for any grammatical mistakes

Trivecta

iTrader: (1)

I asked some friends and they told me gifting is free, but one said he had a pay a percentage of the price that was paid for the truck. Is there no way we can just switch titles...without gifting or selling it to each other?

07specTC

http://www.dmv.ca.gov/pubs/brochures/howto/htvr3.htm

It's all there