Anonymous
09/02/2021 14:28
Subject: [VA] Trading cars with a relative - no purchase price - what happens at DMV?
Two separate transactions. Don't even mention this trade arrangement.
They are giving you a car. In most states (all?), there is no tax paid on transfers between family members. The DMV will have an affidavit that will have to be executed in order for the tax to be waived. You will still have to pay registration and title fees.
They will do the same with the car you are giving them. Trust me, don't try to over-explain anything at the DMV or give them more information than they need. This is two separate transactions.
They are giving you a car. In most states (all?), there is no tax paid on transfers between family members. The DMV will have an affidavit that will have to be executed in order for the tax to be waived. You will still have to pay registration and title fees.
They will do the same with the car you are giving them. Trust me, don't try to over-explain anything at the DMV or give them more information than they need. This is two separate transactions.
Anonymous
09/02/2021 14:21
Subject: [VA] Trading cars with a relative - no purchase price - what happens at DMV?
In MD family members can give each other cars with no tax. Maybe VA is the same?
Anonymous
09/02/2021 14:19
Subject: [VA] Trading cars with a relative - no purchase price - what happens at DMV?
Just give each other the cars as gifts. Don’t pay tax.
Anonymous
08/30/2021 10:02
Subject: [VA] Trading cars with a relative - no purchase price - what happens at DMV?
So, my parents and I are trading vehicles. I will get a newer version of the same vehicle I have, they'll take my current vehicle, and no money is going to change hands. I am also giving them a big ticket home item that they want and I no longer have a use for. So that's the trade, so to speak.
What do I do for the bill of sale? According to the DMV website they will base sales tax on the Blue Book price if you don't have proof of the sales price. I also see that there's an exemption if the vehicle is a gift - should I treat this as a gift and does that have tax implications for the giver?
Or would you list the sales price as the fair market value of the home item? Their vehicle is more than 5 years old.
What do I do for the bill of sale? According to the DMV website they will base sales tax on the Blue Book price if you don't have proof of the sales price. I also see that there's an exemption if the vehicle is a gift - should I treat this as a gift and does that have tax implications for the giver?
Or would you list the sales price as the fair market value of the home item? Their vehicle is more than 5 years old.