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Boozer
06-15-2007, 11:05 PM
If a person sells a car worth $50,000.00 for $1.00 does the purchaser pay taxes on the $1.00 or do they pay taxes on the taxable value of the vehicle? :confused:

framer1
06-16-2007, 05:41 AM
If a person sells a car worth $50,000.00 for $1.00 does the purchaser pay taxes on the $1.00 or do they pay taxes on the taxable value of the vehicle? :confused:
On the dollar but the dmv may question the price:jawdrop:

djunkie
06-16-2007, 11:27 AM
On the dollar but the dmv may question the price:jawdrop:
Ya I have heard of them getting smart on some of these deals. May be better offer putting a little higher price on it to lessen the risk of them flagging it.

wsuwrhr
06-16-2007, 11:30 AM
I think if it is a family member- all good.
If not, don't get yourself in trouble. Deflate it a little bit, but don't get too excited about all that.
Brian

djunkie
06-16-2007, 11:34 AM
I think if it is a family member- all good.
If not, don't get yourself in trouble. Deflate it a little bit, but don't get too excited about all that.
Brian
And if it is a family member do not put it for free. I'm pretty sure the DMV can put an estimated value on it and tax you but thats just what I've heard. Don't hold me to it. :D :D

OverKill
06-16-2007, 11:58 AM
I sold my van to a friend of mine for $2300.00. As far as the DMV was concerned it had to be no less then $13.00 for tax reasons. I did say $1.00 but $13.00 was the minimum. That is what I would ask the DMV, what is the mimimum sale price of a vehilcle.

Boozer
06-16-2007, 12:45 PM
As part of a business deal I am buying the car for $1.00
Customer is getting price X for merchandise and in exchange I get his car for $1.00. Maybe I'll be nice and give him $13.00 for tax purposes :)

CarBizIndio
06-16-2007, 01:00 PM
On the dollar but the dmv may question the price:jawdrop:
It could go in to suspense and they will send the paper work up to Sacramento and you will have to wait quite a while to get the new paper work if you do get it.

Roaddogg 4040
06-16-2007, 01:26 PM
It varies by state. Some states use a tax table so it doesn't matter what you paid... Some don't, but $13.00 might raise a pretty big flag where ever you go......
Steve

YeLLowBoaT
06-16-2007, 06:18 PM
anything under 1 grand they do have you pay sales tax on... thats why all my cars are sold for like $950 :D

PHOTOGLOU
06-16-2007, 07:03 PM
anything under 1 grand they do have you pay sales tax on... thats why all my cars are sold for like $950 :D
Did you mean income tax???? in a situation like this DMV and State board of equalization could get involved and make you pay state and fed income tax on the proceeds when you sell the car or SOONER.....

YeLLowBoaT
06-16-2007, 07:12 PM
its kind of a gray area for income tax, all depends on how the contract is worded... I was speaking stickly for the sales tax you must pay on a car when you got to register it.