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Started By
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re: Buying a used car for a dollar
Posted on 2/11/21 at 12:30 am to tigergirl10
Posted on 2/11/21 at 12:30 am to tigergirl10
Well if you want to get technical, property tax is another. When you bought the place? You paid taxes on it. But each yr, you pay more tax on it.
Or buying a used car. When the buyer bought it new, he paid taxes on it. Im buying it used and I have to pay more taxes on something that was ALREADY taxed.
Or buying a used car. When the buyer bought it new, he paid taxes on it. Im buying it used and I have to pay more taxes on something that was ALREADY taxed.
0
Posted on 2/11/21 at 1:58 am to 40 Rouge
It will be based on the cars value. What you can do is of you know someone in the car repair industry and get a quote to how much it would be to fix the cars if it exceeds or meets the value of the car then you can essentially give it away without paying taxes on the car value.
I have done this in other states though not Louisiana so not sure if it will be the same.
I have done this in other states though not Louisiana so not sure if it will be the same.
Posted on 2/11/21 at 3:22 am to TaipeiTiger
The DMV will want their share. You cannot "give" a car away. Regardless how one does it? Youre gonna pay taxes to put it on the road
Posted on 2/11/21 at 3:54 am to wizard1183
Why can’t you write a bill of sale for x amount and just not exchange the money?
Posted on 2/11/21 at 6:18 am to 40 Rouge
quote:Whats stopping you from giving her $500, $1000 or whatever for the car. Then she just drops the money on the floor and can't ever find it again? *wink wink*
40 Rouge
Posted on 2/11/21 at 6:23 am to 40 Rouge
quote:
You're not missing anything. The annual gifting was planned out, and the lifetime exemption amount is also planned for. They have it all lined up with their accountants and lawyers.
Unfortunately, the terrible circumstances mentioned in my OP have resulted in only one in-law now, not two.
The accountants confirmed that she can't just donate the car(s) to us because of the taxes on her end. I was just looking for another option for her to offload.
Your mother in law and father in law were worth more than $23MM?
Nice.
Posted on 2/11/21 at 6:34 am to LSUFanHouston
quote:
2) If you bring a bill of sale to the DMV for $1, they are going to pull a KBB value out and use that. I've seen that happen before. If you have the price listed as something reasonable, they will take your word on it.
This is what I have always heard. Saw a similar transaction recently where a donation to child could queer papa's benefits qualification, so they drafted a bill of sale for the vehicle and put the lowest reasonable price per KBB, Edmunds and the like. Flew right through.
Sales taxes were a few hundred, but that should be no big deal if granny is such a multimillionaire that her tax team is concerned about exceeding the lifetime giving exemption.
Posted on 2/11/21 at 7:12 am to ellunchboxo
No that’s not how it works. Used to you could put act of donation. Can’t do that anymore and even if you could? You’d STILL pay taxes on it at the DMV for $50-80 even if you were given the car.
Posted on 2/11/21 at 9:11 am to 40 Rouge
Thanks everyone for the responses. I knew the one dollar example was extreme. The fact that the OMV website never mentioned fair market value is what threw me off.
It's my FIL's Porsche. It was his baby, and I want to keep it in the family and eventually pass it down to my son (he's only 5 now). As cars go electric, this thing is 100% worth keeping.
I'll suggest doing a bill of sale for a believable low amount and take care of the taxes on my end. Chances are, she'll hold on to it for now and eventually donate it and take the small tax hit on her end.
It's my FIL's Porsche. It was his baby, and I want to keep it in the family and eventually pass it down to my son (he's only 5 now). As cars go electric, this thing is 100% worth keeping.
I'll suggest doing a bill of sale for a believable low amount and take care of the taxes on my end. Chances are, she'll hold on to it for now and eventually donate it and take the small tax hit on her end.
This post was edited on 2/11/21 at 9:34 am
Posted on 2/11/21 at 9:15 am to evil cockroach
quote:I know that is how they approach boat trailers, every boat trailer ever sold is valued between 200 and 400 bucks.
This right here. I tried to sell a moped for $1. Notary said I had to put a “reasonable” price on the title transfer. I put $100.
Posted on 2/11/21 at 9:23 am to 40 Rouge
quote:
It's my FIL's Porsche. It was his baby, and I want to keep it in the family and pass it down to my son. As cars go electric, this thing is 100% worth keeping.
OP we are talking about 2 different situations here:
1.) DMV Sales tax - they will make you pay a tax based on the KBB value if you sold it for under that.
2.) Gift tax for IRS
If you gift a vehicle to someone for $0, you still have to pay the DMV sales tax on the KBB value.
People are mixing the two up, we are talking about 2 different situations.
Posted on 2/11/21 at 6:57 pm to wizard1183
quote:
No that’s not how it works. Used to you could put act of donation. Can’t do that anymore and even if you could? You’d STILL pay taxes on it at the DMV for $50-80 even if you were given the car.
You can still avoid sales taxes in Louisiana by donating the vehicle IF the donation is between immediate family (like parent to child). Donation form, requiring description of relationship
Posted on 2/11/21 at 7:13 pm to 40 Rouge
What year and model? What a cool thing to keep in the family.
Posted on 2/11/21 at 8:45 pm to 40 Rouge
It would be a simulation and you could be in real trouble if taxing authorities took a hard look at the transaction
Posted on 2/11/21 at 10:31 pm to 40 Rouge
The chances of it ever being audited and caught are effectively nil.
No one looks at OMV records.
I've titled many things for 300 or less. Especially out of state purchases.
No one looks at OMV records.
I've titled many things for 300 or less. Especially out of state purchases.
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