(800) 853-2651
SHOP NOW

Taxes on a pickup at title change - no money exchanged

A

andy r

Member
I have given my son many things over the years without expecting any payment. Examples are his first good car, help with his college education, help with a show pig business, help with housing at his first job, etc. He has helped me with farming as well, expecting no payment, but most of the time getting payment. The last few years with prices they way they were I paid him pretty well. He recently changed jobs within the company he works for and now will have a furnished pickup. He wants to give me his pickup as he has garage space for only their personal SUV and the company pickup. He just doesn't want another pickup sitting out front out nor will he have use for it. He bought it new a few years ago and wants to keep it in the family. He knows he will inherit my farm business someday. He just wants to give me the pickup. When he signs over the title will I have to pay any taxes since it isn't an actual purchase? I know there might be a recording or title fee, just didn't know about the taxes. Are county treasure departments use to this kind of transaction?
 
I did it before and both of us went to the office. I told the clerk what we were doing and after checking his required DL and ins, for $1 and title fee changed the owner.
 
not here in TN as long as it is family wife's uncle gave me a truck but we put it in her name to avoid taxes there is a special piece of paper that must be filled out cant remember what its called
 
Sometimes "gifting" can be tax complicated. Have him sell it to you for a dollar, which is perfectly legal. Almost 0 taxes.
 
My wife was gifted a truck by her mother and there was no sales tax charged, just the title fees and registration fee. The state (Ohio) did follow up and make the wife state that it was gift and no money changed hands, etc. That was it.
 
My wife was gifted a truck by her mother and there was no sales tax charged, just the title fees and registration fee. The state (Ohio) did follow up and make the wife state that it was gift and no money changed hands, etc. That was it.
 
The law varies by state rather than being uniform across the country. In Mo. you can give a vehicle to a family member and the only charge is the paperwork fees to do the title transfer and license.
 
This may be a way to go. If something were to happen to you suddenly there would be no worries about ownership of the vehicle.
 
There is an IRS liability. It is probably a 25k "gift if he signs it over to you. Just leave it in his name.
 

you drive it and its in his name,,, you have an accident and he is now liable also as the owner of vehicle. NOT A GOOD IDEAL.
 
(quoted from post at 22:32:39 08/10/16) For the correct answer check with your state motor vehicle administration or whatever it's called in your state.
Click to expand...
xactly! Here, a few years ago, the 'stated value' went away & was replaced with the state's book value for that vehicle & taxed on title change accordingly. Why do people come to these forums for such advice?! Consult you local taxing authority. What is the law where you live may have NO bearing on the law where I live! :roll:
 
Family transfers of vehicles do not incur sales tax fees in most states. Just the usual title and license fee.

Now I would talk to my tax man about the possible income tax owed on this "gift". If it is just a few year old pickup it still has a pretty good resale value. So you may have to write a purchase contract between the two of you listing a low price to avoid a income tax hit.
 
Nothing against what your son wants to do, but if I were him, Id just keep "my" truck in the garage, and let the company truck sit outside. I would suspect there are restrictions of some type on what he can and cant do with it?
 
Baring aside your state laws others have covered it But I will add a couple things. Yes some states charge book value to register vrs say the old $1 bill of sale. Another option is put both your names on the title then it belongs to both of you and if your dad dies there is no probate, just get your truck back.
 
Depends on local laws. Here the person has to be a first degree relative (father-son, brother-sister etc) and the vehicle is flagged for only 1 tax free transfer per year.
 
WHAT STATE?

Here in NY, you can gift a vehicle tax free under certain conditions. What exactly those are I do not know off the top of my head, but I was given a trailer by an unrelated friend on his death bed, and did not pay taxes. It took three trips to the DMV to get the right forms with his signature on them, but we got it done.

You just have to fill out the right forms, and pay the right fees, and they hand you a set of license plates.
 
No problem in Indiana. I gave my kids cars. I think I just wrote gift on title, If there is a concern, put $1 on title. Call your DMV to find out how it works in your state.

I can tell you when I trade in a car to buy a new one from dealer, my trade in value reduces the amount of money exchanged, which in turn reduces the sales tax I pay.

If an issue and gift doesn't work, try trade, or exchange. No money exchanged.
 
Check your local laws.

Like others have said, from a legal and long range standpoint it might be better if you bought it for one dollar.

When our daughter graduated from college and moved to Washington DC, I still owned the car she had in DC. Came time to renew the registration, I sold it to her for a dollar. (It still had Nebraska plates on it at that point). The DMV people in DC said that was the best way to go. Cut and dried, no possibility of future legal issues. I was in DC myself at the time, and we took care of it in one visit to the DMV.
 
The company truck will probably have some restrictions on personal use, especially for long trips or towing a trailer. Be prepared to loan the pickup back to your son when he needs it.
 
same for IN.

Immediate family including Grandparents no sales tax.

still have other fees and exize tax of course.
 
I am in Kansas. My son's mother gave him a car and he had to pay sales tax on the book value. Would have been true had she sold it for a dollar, too. They look up the value and tax you on the book value, or what you paid, whichever is higher, if you do not buy from a dealer.
 
As the 4 kids were growing up and coming of age, I obtained and adequately restored many "rent a wrecks" to support their needs. I didn't want "the family bus" to be the only transportation for all of us....especially me. I did the title transfers to get me out of the picture so that they could obtain the lowest insurance for persons their age while I was able to retain adequate umbrella coverage to protect me from their activites. Worked very well.
 
In Ontario you can gift a vehicle tax free to a member of your immediate family.My older two boys paid for their first pickups themselves while in high school but the title was in my name for cheaper insurance.We transferred the title when they got older with no tax.
 
You must log in or register to reply here.

Similar threads

A
County wants to vacate a dirt road between two fields
2 3
Replies
41
Views
1K
Destroked 450
Destroked 450
Tgrasher
Always on the hunt
Replies
16
Views
751
Don Rudolph
D
N
Galion 104H
Replies
11
Views
706
Welding man
Welding man
J
Harbor Freight
Replies
13
Views
772
504
5
Slow lane 49
Couldn't say no to a 350 Utility
Replies
18
Views
1K
Slow lane 49
Slow lane 49
Tractor Parts Tractor Manuals

We sell tractor parts! We have the parts you need to repair your tractor - the right parts. Our low prices and years of research make us your best choice when you need parts. Shop Online Today.

Copyright © 1997-2024 Yesterday's Tractor Co.

All Rights Reserved. Reproduction of any part of this website, including design and content, without written permission is strictly prohibited. Trade Marks and Trade Names contained and used in this Website are those of others, and are used in this Website in a descriptive sense to refer to the products of others. Use of this Web site constitutes acceptance of our User Agreement and Privacy Policy TRADEMARK DISCLAIMER: Tradenames and Trademarks referred to within Yesterday's Tractor Co. products and within the Yesterday's Tractor Co. websites are the property of their respective trademark holders. None of these trademark holders are affiliated with Yesterday's Tractor Co., our products, or our website nor are we sponsored by them. John Deere and its logos are the registered trademarks of the John Deere Corporation. Agco, Agco Allis, White, Massey Ferguson and their logos are the registered trademarks of AGCO Corporation. Case, Case-IH, Farmall, International Harvester, New Holland and their logos are registered trademarks of CNH Global N.V.

Yesterday's Tractors - Antique Tractor Headquarters
Website Accessibility Policy

Back
Top