JeeRS

I currently own a car with a payoff of $5K. My girlfriend will pay it off and I will be "selling" the car to her.
She wants to title the car in her name. I don't think the DMV (virginia) is going to accept the fact that the car was purchased for $5K since its fair market value (NADA book) is much more. So, rather than actually write a price, I know you can write "gift" in the sale price section of the title.

Whadya guys think? Lie and put a price close to NADA or lie and say it was a gift. It sort of is a gift. or tell the truth and have them raise hell for the price being below fair market value?

TIA

ado_dado83

All they need is a new name on the title.
It is totally up to you how much you sell YOUR car and to who you sell it.

Even if you sell it for $1 they have no saying in that because it is your decision.

Boston Driver

...value, when the buyer registers the car, the DMV would base the sales tax on blue book value. Not sure if all states do that.

Asicks2.7T

Just do it for $1.

Cargasm2.7

kidding, kidding...with a GF of over 7 yrs., I am in no position to talk.

2.7T_RT(toofast)

Then divorce her. She'll get >1/2 of everything and Alimony! LOL

audikillsbmw

How exactly do you divorce a GF? : )

Ren_2.7T

Move to Oregon and become a resident = No sales Tax :-)

Gerry

if they decide your value is unreasonably low. It is all up to the person who processes your registration as to what is "reasonable" on a bill of sale. Been there, done that.

DasUberAuto

in a lot of states, you can "gift" a car to someone and pay a token fee (usually ~$1), but the problem is that person then has to count it as income on their tax return, and pay tax on it.

If the car is worth $20,000, e.g., and you give it to someone, it is as if that person received an additional $20,000 income, and will have to pay tax on it just as if the $20,000 was earned by a paycheck.

I'm sure a lot of people don't do it, but they're breaking the law and it could catch up to them if they're ever audited.

Take it from me.