_Remi

Hi friends,

Sorry if the question is location specific, I did not know where to ask.

I am about to trade my 01 Boxster S for a 84 Targa with a friend of mine and we are not very excited about paying used car taxes on that (since this really is a swap).

What are our options? Will it be fine if we put a price that is not the market price?

We are not trying to evade taxes, just making sure that we don't pay if not needed.

Thanks!

rusnak

I'm trying to recall how much I paid for my '84. Around $7K I think.

whalebird

Most Porsches are only worth a few hundred dollars.

Ed Hughes

My 993 was pretty economical. Very much in line with an Excellence estimate that was out at the same time.

Ed Hughes

Seriously, I'd call a car dealer and see if only the difference is taxable.

TheBen

Probably not in California.

California is a declared value state anyway. You can put pretty much what you wish or do it as a 'gift' perhaps?

race911

Well, you ARE liable for use tax (same rate as sales tax) for the fair market value of the car when you transfer it into your name.

Now, how you want to evade that is up to you and your conscience. The obvious one is to gift it. Get caught? I know guys who have, but that's because they were on the radar for abusing things. Next one is an inter-family transfer. Being an only child, I've only had opportunity to play that to the extent some quasi-crap has floated down to me from my parents. Finally, you can just state a lower price. If both of you guys have your stories straight (and backed up on the Release Of Liability form), probably nothing will come of it.

(Big picture, anyone wonder how this does contribute to the CA tax gap?)

_Remi

Ok, thanks for the info. There is no such thing as used car tax where I come from and it just feels weird to pay when we are not exchanging money.

I will sell my 986 for 10k and buy his for the same amount then.

Eharrison

You can't deduct the value of the traded car from your ownership transfer. So you're SOL on that part. You also cannot gift the car because you have to fill out a sales exempt form which notes that it does not include vehicle trading.... So you're SOL there. However, no one says you have to pay fair market value. I bought my 1971 911E Targa for a heck of a lot less than "fair market value" I would pick a number you can defend and write up separate sales receipts with the same number. If you're trading a cockster then I've seen them as cheap as $5000 that's about $450 in taxes. No one says that your car is worth $X except you. Maybe you guys stripped out the interiors and stole each other's wheels. I'd be selling a 88 with no interior, a bad motor and crappy paint for $3,000..... "Divorce forces sale". Pick a number you'll be happy with without throwing up red flags. Do you really think that the DMV is going to work for days trying to nail you guys for $300 in taxes?..... Actually they might.

And FYI they tried to pass a senate bill (SBX8 46) in 2010 that would have made you trade $0 in sales tax.... It never went anywhere (that's a surprise).

rusnak

Just found my receipt. $5K in 2000.

whalebird

Ken is right. Pay your taxes as hard as it may be, and if you're not getting representation for your taxation...you're voting wrong.
Sorry for the rant.

Ed Hughes

We vote for the least worst candidate all too often in Calif.

PS- I never vote "wrong".

_Remi

Don't want to start something here but I can't vote

rusnak

omg, don't get me started about taxes in Calfornia, I always vote, but somehow my guy or gal never gets elected.

whalebird

Didn't mean to derail the thread. I find most people in these threads fair minded and I didn't mean to imply or insult. California is only one of many states scrambling for revenue, but if you close the tax gap as well as the graft and corruption...it's a start. The fraud I have witnessed in healthcare/disability right here in my own region is staggering. After our daughter was born in January, I had to fight and plead with the doctors to let me self-pay. Everyone wanted me to file with the state and feds, "they'll pay for it" the doctors kept telling me.
I'm still ranting, and thats no good for this thread. Hang in there everyone.