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tax question


Guest tbutera2112

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Guest tbutera2112

ok well ive traded cars before, and every time ive done it both parties gifted the cars...we did this at the title office, and they knew what we were doing, and didnt say anything....so i assumed it was ok to just gift to each other on straight trades

 

a thread on here said that you have to pay tax even on straight up trades iirc....

 

what is the proper way to do this? looking to trade my car for another car, but i dont really have cash laying around to pay tax on it, would it be fine to gift the cars to each other like ive done in the past?

 

when they audit the cars, they check bank statements of both parties to determine date of sale and if there was a large deposit....dont ask me how i know lol...

 

so if neither party is making a deposit, they would have no reason to believe there was any cash changing hands correct?

 

i want to know the legal way to do this

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