title ???

[2Kblacksleeper]

I'm fairly new at the title stuff.

Here's the story.
I'm thinking about trading cars with a local guy. His lexus for my stang.

Can we just sign our titles over to. Each other for say zero dollars or gift and not have to pay tax again since no money is changing hands?
Or just say we each paid like 1k so were only out like 70 bucks.

Any information is Appreciated.

John

[draggin50]

Last time I done one as a gift they still charged me like $25 for tax. I always put something on them now.

[k062693w]

Be VERY CAREFUL with that !!! If the BMV thinks that the value stated is FAR below the value they will send you paperwork to sign that has to be notorized and sent back to them stating the price it was sold for or purchased for and the value of the vehicle ... Again I would tread lightly with it ... They are the last people you wantt to mess with !!!
I tell you this from experience !!! LOL

[2Kblacksleeper]

I don't want to mess this up. I know if you mess with the bmv it will come back to bite hard.
I mean no. Money is exchanging hands. My 95 for his 2000. Book wise his is probially 3-4k more than mine. Since mods don't really count.

[4EYED85GT]

You could either meet the guy at the BMV and do the transaction with the help of the BMV person or call and ask the BMV how an even trade should be handled on paper.

[k062693w]

I don't want to mess this up. I know if you mess with the bmv it will come back to bite hard.
I mean no. Money is exchanging hands. My 95 for his 2000. Book wise his is probially 3-4k more than mine. Since mods don't really count.

I'm just letting you know that $2-300 in taxes will not be worth the headaches later !!!

Just my $.02

[NXcoupe]

Even trade doubt there is even much more than a 25 buck fee. There is no money changing hands.

[Dirtyd0g]

Even trade doubt there is even much more than a 25 buck fee. There is no money changing hands.

Not the way the government sees it. According to them you are trading a value. If both cars are worth $5000 then $10,000 is changing hands and they want their cut.
Alan

[Waffles]

Even trade doubt there is even much more than a 25 buck fee. There is no money changing hands.

If that was true, there wouldn't be any income taxes! lol Getting paid is an "even trade" for our labor and look how it gets taxed....

[sean]

I put gift on the last thing I got and it was 8 or 10 dollars for the title. As long as you and the seller are on the same page and give each other a bill of sale proving what your doing you will be fine. I had them try to get me a few times saying I owed more money. On one occasion years ago I told them to prove it. Nothing ever came back and my license is still good. On the other I sent them a copy of the bill of sale showing the price paid.. and that was that. They cant do anything about the deal you get for your car. If you are afraid of the gift thing then give each other a 100 dollar bill of sale and be done with it.

[Gene]

I've told the people at the title office that the car was a trade, and they let me transfer it for just the $16.00 in fees. Go to the Milford office if possible...they're really easygoing out there.

[2Kblacksleeper]

Thanks for the info. I will call them when I get back in town.

[Dirtyd0g]

I've seen it go both ways. It really depends on the mood of the person you are dealing with that day. I bought a car for $200 needing an engine and transmission. I paid the few dollars in tax and got a letter saying I owed considerably more. I sent them the bill of sale from the dealer I bought it from showing it was in severe need of repair and never heard anymore about it.
Alan

[Metcalf Racing]

They want tax on the cars value in an even trade. Put 50 or 100 on it and you'll be fine. If you get a letter you both know what you put so it will be fine

[Blackout]

I'm fairly new at the title stuff.

Here's the story.
I'm thinking about trading cars with a local guy. His lexus for my stang.

Can we just sign our titles over to. Each other for say zero dollars or gift and not have to pay tax again since no money is changing hands?
Or just say we each paid like 1k so were only out like 70 bucks.

Any information is Appreciated.

John

You need to put some kind of value on the cars to make sure that you don't have problems later. I would rather pay $100 in tax and title to make sure there isn't an issue.

The easiest way to get your titles done is just go to 5th/3rd or any other bank and they will notorize the title basically out of your name. they only charge like a dollar to get it done. just thought I would throw that out there. then all you have to do is go to the DMV and they will do the rest.

[black90lx]

i just put i payed $50 on the truck i just got because i traded for it. they said i couldnt put trade and i had to put some type of value on it.

[Pitbull1052]

one of the dealer guys might chim in but I thought you paid taxes on the difference if it's a trade type deal and if it's an even trade there is no difference.....

[Dirtyd0g]

If that were true they would deduct the value of your trade in off of the taxes when you buy a new car. To them it is money changing hands and every time money changes hands they want a cut. Think of it as the mob, but legal.
Alan

[black90lx]

i think paying taxes on a trade is a rip off. i feel like they taxing on something that was already taxed.

[sean]

I screw them every chance I get and I always cover my ass. I cant stand working long hours so they can tax my check so i can spend it on shit and pay more taxes on that. Besides the fact that cars get taxed more than most things. Tax every time you buy it, put gas in it and fix it so you can keep it running and sell it so someone else so they can pay more taxes and start all over again???

[Pitbull1052]

If that were true they would deduct the value of your trade in off of the taxes when you buy a new car. To them it is money changing hands and every time money changes hands they want a cut. Think of it as the mob, but legal.
Alan



ummm Alan they do this is from the Ohio Department of taxation I sold cars for 10+ years I just wasnt sure how it worked on a private sale with the vehicles being of equal value... after I posted it I remembered it was only on new cars.


Trade-in Allowances:

New motor vehicles (including all-purpose vehicles and off-highway motorcycles but does not include manufactured homes or mobile homes) –- the tax base can be reduced on the sale of a new motor vehicle when a licensed new motor vehicle dealer accepts a motor vehicle in trade. No other item accepted in trade can reduce the tax base of a motor vehicle.
For example, a new car is priced at $18,500 and the customer receives a trade-in allowance of $500, leaving the net difference $18,000. The tax base becomes $18,000.

Note: The tax base is not reduced on the sale of a used motor vehicle when a trade-in is allowed

[Dirtyd0g]

Is that federal or state? I went with my mom when she traded her car in and I don't recall them giving her a tax break for that. It was Kentucky, the automotively greedy state.
Alan

[ClevelandMstang]

If you put nothing or gift, they CAN but may not send you a bill on book value, I traded a few years back with a motor cycle, no money changed hands, but I got a letter stating I had to pay taxes on book value of the bike anyway, sucked but it CAN happen... so be careful... I always put somethign now even if there is no money changing hands...

[2Kblacksleeper]

I think were just going to say a grand each, both write a bill of sale just in case there is any question.
That is if we like each others cars.

Thank you for all the insight though.