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Hey all

I'm selling my civic and I was wondering if i could sell it as a gift and what the advantages/disadvantages of that would be in BC. Also, do I have to pay any taxes on it ? I think I read somewhere that only if I sell it above book value that i need to pay tax on the profit amount. If someone could let me know I would greatly appreciate it.

Thanks in advance.

 
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In the US if you give it away as a gift the person whos accepting the gift has to pay the taxes on it, no matter what the price is.

 
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^^ yea I read a few with the same jest regarding US laws but I'm wondering if Canada would be the same since our automotive laws tend to vary greatly.

Thanks for your input though, Sincerely appreciated.

 
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arent gifts usually free? lol

 
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uhm......no.

 
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a family member of mine had given a car as a "gift" and the person only had to pay $25 for the sales tax, rather than the 5% of book value (thats how it is here in MA, idk how it is anywhere else) anywho, thats how it is here, but asyou said im sure up there its diffrent

 
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lol I was going to mention that but I figure I would give the man a break lol

 
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A gift can be given to someone else in Canada as long as there is a relationship between the 2 that would warrant a gift. And the price is up to $20,000 or somewhere around there. The receiver doesn't have to pay any taxes on it at all.

My dad gave my brother a $12,000 car a few years ago, that's how I know.

 
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So it has to be family or could we just say that we're friends?

 
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I don't think that's going to work, you don't hear of too many friends giving $15,000 gifts without expecting payment in return. It's the same reason you aren't allowed to take out life insurance on someone you don't know but you can on another family member or employee.