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How to transfer a title....


SchmuckGirl

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So I have a handshake deal to 'trade' bikes with a woman on Tues night. She has an '07 GSXR 600 that's just a little too big for her and I have my '05 GS 500 that's a little small.

My question is regarding the title transfer. I have never done this before and am a little confused. We both have a clear title, in hand, and I am giving my bike + cash for her bike. I checked online but every source I found says that you write the terms of sale on the back of the title when you get it notarized, then pay sales tax when you to go to DMV. Well, it seems silly to pay sales tax again so she said we will 'fudge' the numbers.

Sounds good to me except, will this affect the value of my new bike with my insurance company? Is this how people usually go about this kind of thing? I feel like I am missing something, but I tend to over-analyze EVERYthing so I just wanted to get some input.

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It should make no difference with your insurance. I probably would not put that you paid $1 for an 07, but a few hundred should be fine. Just make sure you both agree to the numbers you're gonna write on said titles in case they decide to call the other to verify, which I have heard of being done on a few rare occasions.

And congrats on the new ride!! Need pics asap!

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There's no numbers to fudge, it's a trade. besides if there are monetary compensations, you'll have to pay tax on that, but it won't be much just pay it.

+1 Just report whatever cash you payed her and the rest is a trade..

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Have fun paying the TEN THOUSAND dollar fine for "fudging" the numbers. You might not want to tell everyone and their bro if you plan on tax evasion.

I was planning on low balling the #'s on my title until I was reading how harsh the penalties are- Its worth the couple hundred bucks to stay on the up and up.

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Sales Tax

Sales tax is required to be paid when you purchase an automobile. Sales tax is figured on the purchase price of the vehicle. If the vehicle is new and has never been titled, the tax will be figured on the difference between the purchase price and any trade-in amount.

If you buy a vehicle outside of Ohio for use in Ohio, credit may be given for any tax paid to the other state and may be deducted from taxes due in Ohio.

On your title you would write 0 and on her's she would put the amount of cash you are giving her, according to the text above from the BMV. I am assuming this works for used vehicles as well.

As far as insurance goes, I don't think they care as to the value of the bike so much as the type/size. I would call your agent to see what the difference is.

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Sales Tax

Sales tax is required to be paid when you purchase an automobile. Sales tax is figured on the purchase price of the vehicle. If the vehicle is new and has never been titled, the tax will be figured on the difference between the purchase price and any trade-in amount.

If you buy a vehicle outside of Ohio for use in Ohio, credit may be given for any tax paid to the other state and may be deducted from taxes due in Ohio.

On your title you would write 0 and on her's she would put the amount of cash you are giving her, according to the text above from the BMV. I am assuming this works for used vehicles as well.

As far as insurance goes, I don't think they care as to the value of the bike so much as the type/size. I would call your agent to see what the difference is.

That's not what it's saying. Only when trading used for new do you pay tax on the difference. Used for used, the entire amount is taxable.

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fuck the state the get their tax when the bike is bought the first time. They dont need to get paid again and again on that same bike fuck them, fudge the numbers and when they ask tell them to come appraise the fucking bike

:plus1: Give her cash and both agree on what numbers you're gonna put down. How they gonna prove otherwise??

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fuck the state the get their tax when the bike is bought the first time. They dont need to get paid again and again on that same bike fuck them, fudge the numbers and when they ask tell them to come appraise the fucking bike

+1.... and if you feel so bad about it, use the money you save and buy gas for it -- the state gets their cut there too.

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lol, well, thanks for the input. I guess I'll go the up and up route cause the words 'tax evasion' leave a bad taste in my mouth :eek:

It just really does seem like overkill to me that we pay taxes on these over and over again, like shitty said, but it's the society that we live in, so gotta play by the rules, right ;)

I'll still be smiling as I'm getting to know my new ride! :banana:woo hoo!

Oh, and stop giving schmuckingham these crazy ideas about a sugar mama!! :broke:

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Your not paying taxes over and over. You are only paying taxes on the difference of value between the 2. Equal trades of equal items are tax free.

You're right. I guess I should say - I don't like that I have to re-pay the taxes that she already paid. Especially since I am sure compensation for her is built into her price.

But it is what it is and now I'll just hold my breath until this deal goes through and I'm bringing the new bike home.

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