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Hey guys I'm close to selling my ride to one of my friends and of course I'd like to save him a little on the tax of the sale. Let's say the KKB value of the car is worth $10,000 and I sell it to him for $5000. How would the state determine how much tax to charge?

 
Rep Power: 345

they tax the NADA value of the car when your friend goes to the motor vehicle department to register it. are you still 8.625% up there?

 
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Yes sir... Thanks

 
Rep Power: 400

is it different in your state?

here in wisconsin they charge tax on whatever the purchase price of the car is, regardless of what its value is.

 
Rep Power: 380

same here we just put yeah sold for $2500 if we sell it for $5000. jsjt to save them the taz.

 
Rep Power: 0

Hmm I looked at the tax form for the transaction ( http://www.nydmv.state.ny.us/forms/dtf802_01.pdf ) and it doesn't mention the NADA value. It says:

If the purchase price is lower than current market value as determined by the Tax Department, the seller must complete the back of
this form in order for you to pay tax on the lower amount. If for any reason you must obtain a registration or title before you can establish the amount of tax
due, you may obtain tax clearance by paying the tax due based on the market value as established by the Tax Department. If this results in an overpayment,
you may apply to the Tax Department for a refund or credit of the amount overpaid.

Well my car was in accident and so it's being sold "below" the fair market value of like $12,000. But I don't know how to tell them that. Do I still fill out page 2 even though none of the items 3,5 apply to me?

 
Rep Power: 319

In Ohio they use the selling price too. However if you make it to low, the title office reserves the right to use the NADA value for tax purposes, but they rarely do. They asked me about it once and I just told them it had a blown engine, and they said oh okay, really though the valve cover gasket was leaking a little oil. lol Thing is the state has no way of finding the condition of the car, so it's rather unfair of them to say what the value of the car is. Just don't put it to long and you should be fine.

 
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why dont you make it under the table and say you're giving it away as a gift for college... That what my mom did with my uncle and all we have to pay is new registration, tag, and some paperwork

 
Rep Power: 319

In Ohio, you can only gift a car if it to a family member