zeitgeist57 Posted July 5, 2011 Report Share Posted July 5, 2011 Sorry for the CAPS ATTACK...I'm looking to make a purchase tomorrow! Basically, I'm looking to buy a vehicle from my in-laws and I am wanting to know how sales tax is tracked and verified. I'm assuming when I get the vehicle registered, and the title (transferred to my name) shows a purchase price of $10k, then I owe BMV in Franklin County 6.75% of $10k? If the vehicle is worth $25k and I buy it for $10k from family, can the BMV come back and demand fair-market value for the car? I'm just worried that - even though I'm getting a sweetheart of a deal - the guvment can come back and get me for taxes... Quote Link to comment Share on other sites More sharing options...
Mr. Jones Posted July 5, 2011 Report Share Posted July 5, 2011 The worst they do is send a letter to both parties asking to confirm the purchase price. So long as they both match, no harm no foul. For that matter, they can "gift" it to you..... Quote Link to comment Share on other sites More sharing options...
El Karacho1647545492 Posted July 5, 2011 Report Share Posted July 5, 2011 gub'mint doesnt get a subscription to Black Book. they don't care what "fair market value" is, they just don't want red flags going up when a purchase price is said to be $0. When my uncle gifted me his old POS truck, we put $1 sale price on the title. Quote Link to comment Share on other sites More sharing options...
Buckeye1647545503 Posted July 5, 2011 Report Share Posted July 5, 2011 what jones said is is correct and alex you can write gift on the title as long as both parties know it is a gift (ie if the feds come asking) Quote Link to comment Share on other sites More sharing options...
Flyin Miata Posted July 5, 2011 Report Share Posted July 5, 2011 Fuck, wish I would've known about this when I bought the MS3 from my father. We fudged the numbers a little bit but I still paid sales tax on $15,000. I had heard that they did away with the whole family gifting thing, that's what I get for not checking. Quote Link to comment Share on other sites More sharing options...
mjrsplat Posted July 5, 2011 Report Share Posted July 5, 2011 I usually put $300 or something as the purchase price. if they ask questions at the dmv, It's because the car needs motor work. Quote Link to comment Share on other sites More sharing options...
Mensan Posted July 5, 2011 Report Share Posted July 5, 2011 If the purchase price is way out of bounds, it can throw up a red flag and they will ask you to verify. They will want to see a notarized bill of sale. If you have one that says the car is disabled and you are buying it "as is", you should be fine. They may contact the seller, so make them aware as well. Quote Link to comment Share on other sites More sharing options...
CHERRY Posted July 5, 2011 Report Share Posted July 5, 2011 Earlier this year I gave one of my Turbo Mini Vans to my youngest son as a wedding gift. We both went to the BMV and told them that it was a gift and there was NO QUESTIONS asked by them and no taxes were paid by my son. Chuck Quote Link to comment Share on other sites More sharing options...
STEVE-O Posted July 5, 2011 Report Share Posted July 5, 2011 wow people be crazy... you can put $1 as long as the seller knows. They wont ask you any questions at the bmv the only reason they would ask anything is if the specific teller wanted to know for their own good. The bmv itself doesnt care. Yes if you put the sale price at 10k you ahve to pay the tax then and there to get the title in your name.. Lastly if the teller does ask again for their personal reasons you just can tell them you traded and dont let them play the role like they know what they are talking about because you NEVER NEVER NEVER pay taxes on the value of the car you pay on the PRICE of the car. dont be out smarted and get a huge headach/ run around because they dont know what they are talking about Quote Link to comment Share on other sites More sharing options...
El Karacho1647545492 Posted July 5, 2011 Report Share Posted July 5, 2011 what jones said is is correct and alex you can write gift on the title as long as both parties know it is a gift (ie if the feds come asking) I think we did the $1 thing because California has different laws. This is all speculation, but he lives in Berkeley and was worried that if we put $0 or Gift on the title that CDMV would audit him and charge tax on an estimated value. I wouldn't put it past them to do that, cash strapped as they are. Quote Link to comment Share on other sites More sharing options...
JaSSon Posted July 5, 2011 Report Share Posted July 5, 2011 How does this work out of state? If I buy a car in say New York and go to title it here, do I owe the Ohio BMV 6.75%? Quote Link to comment Share on other sites More sharing options...
El Karacho1647545492 Posted July 5, 2011 Report Share Posted July 5, 2011 How does this work out of state? If I buy a car in say New York and go to title it here, do I owe the Ohio BMV 6.75%? if you live in Franklin County, yes. Quote Link to comment Share on other sites More sharing options...
ImUrOBGYN Posted July 5, 2011 Report Share Posted July 5, 2011 I heard this may be changed. I've always done the $1 dollar thing, as well. I cannot remember the details, though. Quote Link to comment Share on other sites More sharing options...
Littleguy Posted July 5, 2011 Report Share Posted July 5, 2011 You guys are lucky. In Houston it they look at book value for the vehicle and the sale price and tax you on whatever one is higher. ftmfl. Quote Link to comment Share on other sites More sharing options...
nurkvinny Posted July 6, 2011 Report Share Posted July 6, 2011 Ha, I got a call TODAY from the seller of my scooter. She (husband of seller) was freaking out about getting the letter asking for sale information. This sale was legit all the way around, so I don't know what red flag could have possibly triggered the letter. Looks like some inquiries are truly random. Quote Link to comment Share on other sites More sharing options...
Steve R. Posted July 6, 2011 Report Share Posted July 6, 2011 For that matter, they can "gift" it to you..... I heard somewhere that they want you to get it appraised if it say gift? Quote Link to comment Share on other sites More sharing options...
nurkvinny Posted July 6, 2011 Report Share Posted July 6, 2011 Ha, I got a call TODAY from the seller of my scooter. She (husband of seller) was freaking out about getting the letter asking for sale information. This sale was legit all the way around, so I don't know what red flag could have possibly triggered the letter. Looks like some inquiries are truly random. AND... just got another call letting me know her husband put a different amount on the state form than what I actually paid. A larger amount. Fuuuuuuuu. This could be fun. Quote Link to comment Share on other sites More sharing options...
Flyin Miata Posted July 6, 2011 Report Share Posted July 6, 2011 So here is my question. I bought my car from my dad, I paid a decent chunk in cash but still ended up financing about $10,000 of it through my credit union. Let's say that I had put down something ridiculous like $100 for the sale price or did the whole family gift thing. Would the DMV, seeing that my car has a lien on it, be able to figure out that I was paying at the very least $10,000 for the car? Not like it matters since I already paid the tax on the actual sale price (sort of), but I'm just wondering what could have happened if I tried to get around the system. Could come in handy for the future. Quote Link to comment Share on other sites More sharing options...
Kawboy1647545515 Posted July 6, 2011 Report Share Posted July 6, 2011 I've been audited on every private sale/buy I've done in the last 4 years. The worst was on a bike trade I did where they sent me a second round of letters (only to me) stating they didn't believe the value I used despite me and the other party having matching stories. I ended up on the phone with them and stated the bike had engine issues that hurt the value and they dismissed the case over the phone. It was very difficult to get ahold of the people I really needed to talk to though. After that, I always let the other party know that an audit is likely to happen and make sure we both know what was put on the title and "why". Quote Link to comment Share on other sites More sharing options...
CRAWDAD Posted July 6, 2011 Report Share Posted July 6, 2011 story. I paid off my brother-in-laws bike (15k). when his bank mailed him the title, we went down and transfered it and put $0 in the sale price! 6 months later he gets this letter in the mail. I have blacked out all personal info. http://i212.photobucket.com/albums/cc84/croz98gt/img011.jpg here is the part that they wanted him to fill out and mail back in. http://i212.photobucket.com/albums/cc84/croz98gt/img012.jpg he filled it out truthfully and mailed it back in. I called and talked to a lady and told her what had happened and I had the money topay the taxes. she told me to just wait until you get your letter. I'm still waiting, and this happened a few years ago! Quote Link to comment Share on other sites More sharing options...
El Karacho1647545492 Posted July 7, 2011 Report Share Posted July 7, 2011 AND... just got another call letting me know her husband put a different amount on the state form than what I actually paid. A larger amount. Fuuuuuuuu. This could be fun. did you buy your scooter off a retard? Quote Link to comment Share on other sites More sharing options...
nurkvinny Posted July 7, 2011 Report Share Posted July 7, 2011 did you buy your scooter off a retard? We'll see how it plays out. He put his original asking price on the audit form. Problem is, I paid $600 less than that. To make it even mo' funner, his "wife" (with a different last name) did the notary service before I put my name, the mileage, or the price on the title. I am thinking she's in more heat (if the state even cares) than me. Not worried. It's done. Can't change what he did. Quote Link to comment Share on other sites More sharing options...
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