Question on trading cars? BMV and such

[Benner]

Looking at the possibility of a straight trade. Both cars are roughly the same value.

 

What I'm trying to figure out is whats the best way to go about doing this as to not get taxed again on the vehicles from the title office/BMV. Both of us have the titles in hand.

[Not Brian]

There's no way around getting taxed again. You'll have to have a bill of sale with a sale price on the title just as if you're selling it.

[Benner]

So basically are you still able to do a sale price of say $100? and get taxed for that?

[Sturg1647545502]

yes

 

 

also

 

 

 

http://i209.photobucket.com/albums/bb244/98xploder/IMAG0308.jpg

[Not Brian]

You can write whatever you want, but just like selling a car you're legally supposed to put the sale value there.. even in a straight trade - otherwise people could say they traded straight up for a piece of bubble gum when filling out that part.

[1fast5gp]

There is no way avoiding legally. If you get audited, they will ask for money. But both of you could commit perjury by lying on the audit forums. But if you get caught doing that, then... lol. You can gift it to each other by writing that on the title as Gift. There is no tax on it until the value is over 20k, then you have to pay a gift tax. But I don't know how that will hold up in court if they decide to go after you though. I would not risk it. Not worth the hassle if you get caught over a few hundred bucks.