I’ve been looking for a definite answer but all I get is a lot of “I think” or “it should be this” so I need someone that has been through it. I have a car, rx7 Ls1 swap that I will price at $15,000. There is a BMW M3 that is at $17,000. We want to make a fair even trade but I don’t want to pay taxes on $17,000! What are my options? I know if it was a dealer I would only pay taxes on the $2,000 but this is private sale.
Thanks,
Joel
You pays the taxes on the M3, he pays taxes on the RX7.
http://dmv.ny.gov/forms/dtf802.pdf There’s the form.
Section 5, question 1c.
“c. Value of property given, traded, or swapped, or services performed instead of cash payment…”
You sure the vehicles aren’t each worth $5,000 due to some body damage or improper running? (hint, hint)
Pretend you bought it and fill out a bill of sale for a low amount. Say you bought it for $500 and only pay taxes on $500.
Private sale… As long as you two agree on the “price” you write down on the DMV fourm and bill of sale who will be the wiser…
Haha I see we are all on the same wave length
DMV does have the right to charge you tax on the book value of the car especially if they feel you put an extreme lowball price.
I remember buying and selling vehicles for “$1” back home since if it was a “gift” you were still responsible for a stupid amount of taxes. They fixed it now though where in NC they just charge you taxes on the tax value of the vehicle. That being said, it’s still only like 1-1.5% rather than whatever retarded amount NY charges. For example, when I bought my T/A, I think I only paid ~$140 for tax, tags, and title at the DMV vice almost $700 for the BMW here in NY…
Fill out DMV form for tax on both vehicles. As long as you both agree. You can put down you bought it for only $1.00. I have never paid over $100 for any of the 25 cars I have owned according to dmv. No questions asked. It’s not your problem on you getting a great deal.
i htought you only paid taxes on amout of money exchanged in your case the two thousand dollars would be taxed but not the value of the cars because its an even exchange. I did this once ( even trade ) and just had to pay title and reg no sales tax on cars worth over 13k
yea i might not be remembering right but i don’t think i payed taxes when i swapped my mr2 for the rx7 since it was an even swap.
You’d pay taxes on 2000.
It’s pretty clear on the affadavid form, download it from the web
Write the sales for a low amount or as a gift . Thats what I did for my cars.
Like-kind exchange. You pay tax on the spread.
Either way I doubt you’d have an issue since I’ve never had anyone at the dmv give a single fuck but you might as well play it safe and “buy” the m3 for cheap and “sell” him the rx7 for cheap. Or you might be stuck proving to the dmv why your 93 mazda is only worth 2k less than an e46 m3.
you are legally responsible for the taxes on the entire value of the car you traded… i know this because it killed a deal last year for me on a TT car.
Maybe its me but why are people making this more difficult then it is. Put down you bought the car under book value, write it in for a few hundred bucks or what ever you want to pay tax on ( I personally never bought one over $100 to dmv). You’ll pay tax on ONLY that amoount. DMV isn’t going to give two shits about your 10+ year old car. Do not put it down as gift or trade, then you pay book value on the car. I’v seen people do this thinking there not paying anything, and they pay up the ass. If they care to ask why so cheap, you bought it as a roller. Simple in and out deal.
yeah its not like your registering a F430 for $1000. Check the box for paid less than fair mkt valve, fill out section 6 and be on your way. They can question it, but they never do. The people behind the counter are not “car” people, they wont know what its worth. and how would you be able to prove it anyway? DMV going to come to your house and inspect the car??
Exactly!
Tell them it needed an engine and they will wonder why you even paid “$200” for it.
that works with junk hondas and shit… not so much with more expensive cars.
DMV questioned the sale of my Viper when I sold my Viper for “20K” in 2004. I had to verify via additional paperwork that ‘the engine was blown’.
exactly.