[hl0m4n]

so you buy the car from the guy, get the title, and go to dmv to register it. does the dmv charge me tax on the total amount i bought the car for?

how does taxes apply when buying a car from private party?

help much appreciated, thanks guys.

[ZJP]

The sales tax will be calculated based on the purchase price of the vehicle and the current tax rate of the city it is purchased in.

This is why some people have the seller write it off as a "gift" so that they don't have to pay any sales tax.

[hl0m4n]

thanks for the info. so the tax is calculated at the dmv when i register the title?

how does the gift work out? i just pay the guy, he writes it as a gift, and i get away tax free? any downside to writing it off as a gift on my end (buyer)?

also if we negotiate the price at $35k, can't the seller just put down he sold the car to me for $5k and be done with it so i can pay few tax?

[ideliver]

Sure you can do that...but you will sign a form that attests to the accurcacy of the purchase price...if it seems out of line...some counties will investigate...everyone is broke these days...is it worth the legal hassles??

Plus...the seller will roll on you the second the tax mans comes knocking

[hl0m4n]

hm... if the guy has the title, he owns the car right? so why can't he just sell it for whatever price he wants to without valuing the car properly for tax purposes?

the law =

[ZJP]

Originally Posted by hl0m4n

how does the gift work out? i just pay the guy, he writes it as a gift, and i get away tax free? any downside to writing it off as a gift on my end (buyer)?

Correct.

However, I would only advise doing this if the car purchase is under $10k give or take where nothing looks too suspicious. Having a car worth $35k being written off that he sold it to you for $5k looks super fishy.