Moonkei

I don't have any experience with this, so I wanted to get some feedback.

I'm located in Vegas, but from the looks of it, if I end up finding a S, it'll most likely be in So. Cal unless other deals pop up around here when the time comes.

My buddy tells me what he has done in the past (in California) is pay cash, and have the seller write the car off as a gift so he didn't have to pay the tax. Is that a common thing to do? I don't want the IRS knocking on my door.

common reactor

The IRS isn't going to come knocking on your door . I live in NJ, and when I bought my S2000 in Long Island I had the previous owner just write on a piece of paper that I bought it for $5,000. So, I paid tax but not much. Just do that.

dparm

There isn't any sales tax charged on private transactions IIRC. When I sold my Acura Integra privately the state had no knowledge of it, other than the transfer of the title.

takeshi

[QUOTE=Moonkei,Oct 5 2008, 07:36 PM] I don't want the IRS knocking on my door.

mmm def

You have to pay sales tax when you register the car.

funat9000rpm

agreed. You only pay taxes at time of registration... there is no private sales tax on cars..

DDonovan

In Canada I believe tax is based on blue book if the value on the transfer is too low. Tax is paid when you register for insurance.

Moonkei

Sorry for the confusion, yeah I meant the taxes you pay at the time of registration.

RFCR

registration tax in CA is paid based on Bill of Sale price. It is the buyer's responsibility when they buy your car. Your responsiblity is to get a release of liability filed with your own DMV when you hand over the car. The sales price is the price your buyer pays tax on. To qualify as gift you have to fill out a form to certify that from the DMV. In CA that is possible to relatives and next of kin, I don't think its possible with anyone else.