SchmuckGirl Posted June 2, 2008 Report Share Posted June 2, 2008 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. Quote Link to comment Share on other sites More sharing options...
zerocrash Posted June 2, 2008 Report Share Posted June 2, 2008 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! Quote Link to comment Share on other sites More sharing options...
Dweezel Posted June 2, 2008 Report Share Posted June 2, 2008 I'd also get the terms typed out, both of you sign, and have two copies notorized so theres no dispute later. It'll cover both your asses if anything should happen. Quote Link to comment Share on other sites More sharing options...
Disclaimer Posted June 2, 2008 Report Share Posted June 2, 2008 That's quite the upgrade! Congrats. Quote Link to comment Share on other sites More sharing options...
schmuckingham Posted June 2, 2008 Report Share Posted June 2, 2008 That's quite the upgrade! Congrats.ANd again she has a nicer bike than me :sad: Quote Link to comment Share on other sites More sharing options...
zerocrash Posted June 2, 2008 Report Share Posted June 2, 2008 ANd again she has a nicer bike than me :sad:I was gonna say something to that effect, but knew you would bring it up yourself eventually Quote Link to comment Share on other sites More sharing options...
Disclaimer Posted June 2, 2008 Report Share Posted June 2, 2008 ANd again she has a nicer bike than me :sad:Aww, quit your bitchin' -- sounds like you got yourself a sugar momma!! We're all jealous.Treat her well and she may even let you ride it..... on the BACK! Quote Link to comment Share on other sites More sharing options...
zerocrash Posted June 2, 2008 Report Share Posted June 2, 2008 Treat her well and she may even let you ride it..... on the BACK! That would be a sight to see Quote Link to comment Share on other sites More sharing options...
R1Limited Posted June 2, 2008 Report Share Posted June 2, 2008 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. Quote Link to comment Share on other sites More sharing options...
Dweezel Posted June 2, 2008 Report Share Posted June 2, 2008 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. Quote Link to comment Share on other sites More sharing options...
wolfman Posted June 2, 2008 Report Share Posted June 2, 2008 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.. Quote Link to comment Share on other sites More sharing options...
HellBender Posted June 2, 2008 Report Share Posted June 2, 2008 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. Quote Link to comment Share on other sites More sharing options...
walther_gsp Posted June 2, 2008 Report Share Posted June 2, 2008 Sales TaxSales 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. Quote Link to comment Share on other sites More sharing options...
shittygsxr Posted June 2, 2008 Report Share Posted June 2, 2008 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 Quote Link to comment Share on other sites More sharing options...
zerocrash Posted June 2, 2008 Report Share Posted June 2, 2008 Sales TaxSales 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. Quote Link to comment Share on other sites More sharing options...
zerocrash Posted June 2, 2008 Report Share Posted June 2, 2008 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 Give her cash and both agree on what numbers you're gonna put down. How they gonna prove otherwise?? Quote Link to comment Share on other sites More sharing options...
Disclaimer Posted June 2, 2008 Report Share Posted June 2, 2008 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. Quote Link to comment Share on other sites More sharing options...
APCh8r Posted June 2, 2008 Report Share Posted June 2, 2008 be careful with how much you put down for the value because they could come back and audit it on you. I will call the BMV and explain your situation and see what they have to say. Quote Link to comment Share on other sites More sharing options...
zerocrash Posted June 2, 2008 Report Share Posted June 2, 2008 The BMV will tell her to add the value of the bike she's giving her plus the cash, then pay tax on that amount. Quote Link to comment Share on other sites More sharing options...
SchmuckGirl Posted June 2, 2008 Author Report Share Posted June 2, 2008 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 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!! Quote Link to comment Share on other sites More sharing options...
fusion Posted June 2, 2008 Report Share Posted June 2, 2008 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. Quote Link to comment Share on other sites More sharing options...
SchmuckGirl Posted June 2, 2008 Author Report Share Posted June 2, 2008 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. Quote Link to comment Share on other sites More sharing options...
fusion Posted June 2, 2008 Report Share Posted June 2, 2008 yeah sounds like a kick ass trade up Quote Link to comment Share on other sites More sharing options...
Benyen Soljax Posted June 3, 2008 Report Share Posted June 3, 2008 so if my mom gives me a car i have to pay tax on it when its titled in my name? essentially same situation except one is giving a bike and one is paying cash for one.i call BS. a gift is a gift, and cash is cash. Quote Link to comment Share on other sites More sharing options...
Dweezel Posted June 3, 2008 Report Share Posted June 3, 2008 and jail for tax evasion is jail for tax evasionJ/K if it's your first offence you'll probably get a slap on the wrist. Quote Link to comment Share on other sites More sharing options...
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