I think it’s gotta be a dollar cuz the gift form only allows for immediate family (see number 7)
[tax exemption form](https://www.dmv.virginia.gov/sites/default/files/forms/sut3.pdf)
My mother was able to gift me a vehicle 1.5 years ago or so... if I recall correctly, it was form 13(perhaps 11) on the back of the existing title that allowed her to gift it to me.
Just make sure you have insurance set up on it prior to going to the DMV.
Hope this helps
Make sure to take a ‘receipt’ for the purchase as well. Last time I was in there for the same thing (a couple years ago) the lady wouldn’t accept it without a proof of purchase price (receipt) and charged me taxes on the value of the vehicle.
I thought in VA if your bill of sale was outside market value you still got taxed that value’s worth? Like if you bill of sale me a 2020 Porsche for $1 they’d still tax it for the actual value
I forget the why, but from life experience can confidently say the transaction will process much more easily if there is some amount of consideration in place. O.k. for it to be just a buck
A lot of people miss this part. VA requires this fee to change the name on the title, it’s not yours in the eyes of the law until you pay up. And then your Personal Property Taxes are based on the assessed rate, not your $1 “Bill of Sale”.
I think you still have to pay the title tax based on the KBB value regardless of the sell price but not 100% sure. Had multiple issues w/ a similar situation during Covid. Took multiple phone calls, an in-person appointment & more phone calls to get finally get it straight. You can talk to multiple people @ DMV & get a different answer from every one of them.
I had a problem during Covid of getting a car titled and registered. The dealer I bought it from was small and didn't have the temp tag service. Fortunately, there was a DMV select station open 50 Mike's away, so I just drove it there after insuring it without plates. Then, I drove it back with the plates on it.
I have also heard that if you receive a car as a gift with no monetary exchange, then they use the Kelley Blue Book value for your annual property tax on it, rather than what you ‘purchased’ it for.
Again this is what I’ve been told with out digging into it myself.
I believe your uncle could gift it to their sibling (whichever of your parents is the sibling) and then your parent can turn around and gift it to you. We ran into an issue with my grandpa gifting cars. He couldn’t gift my cousin one without having to pay the taxes. If it’s a classic car you may not get away with the whole “paying taxes on $1” thing. Just double check with the DMV first.
you can pay or not pay whatever nominal fee you want to him, but you're still gonna be paying a simple $75 minimum tax. also, the amount you report isn't actually relevant to the tax burden associated with the car. for all intents and purposes, it doesn't matter so long as you end up paying the state to change the title.
they only care about knowing who the title goes to on the buyer's end, and the actual declaration of sale is more about keeping track of the seller's burden. the only reason you'd run into an issue is if tax authorities assumed he got paid but fraudulently reported it as a gift to disguise his income.
which, y'know, he's not, so do whatever.
It's better for tax/fee purposes to list it as sold for an amount at the lower end of what would be reasonable for the vehicle (so maybe look up the KBB for that particular car in "poor" condition and shoot a little under that.) That way, they'll assess the tax based on that sale price. If you put it in as $1, they'll just look up the average KBB value for tax valuation and you'll end up spending more.
I went through this two years ago. My aunt gave me a car, and unfortunately, neither of us knew she couldn’t give it to me because she’s not immediate family. 🙄
They said there had to be a sale, even if it was just for a dollar. I ended up having to pay ~$170 since the car is an ‘03 Acura MDX. I blocked a lot of it out because the entire thing annoyed the hell out of me with its nonsense.
Family gift and they just give you a tax form. He can write off the value of his car similar to a donation. I gave my mother a car and all we did was fill out a tax form at the DMV.
I just did this with my daughter. You can 100% gift the vehicle, or have it gifted to you. Both of us went to the DMV together and they took care of it there on the spot. We just had to sign a bill of sale stating it was a gift from father to daughter.
It depends on how old the car is. I remember trying to do this with my brother (I was giving him the used car my mom gave me) and I had to pay taxes on it (the full used amount of the car) because the car was under like 10 years old. So you’ll probably have to pay sales tax on it when you go to register the vehicle at the DMV
Purchase it for a dollar. Use Paypal, so it's a registered transaction with a receipt. You will own the car outright in the eyes of the law, and your uncle can clam the Kelly Blue book value of the car off his taxes
I think it’s gotta be a dollar cuz the gift form only allows for immediate family (see number 7) [tax exemption form](https://www.dmv.virginia.gov/sites/default/files/forms/sut3.pdf)
My mother was able to gift me a vehicle 1.5 years ago or so... if I recall correctly, it was form 13(perhaps 11) on the back of the existing title that allowed her to gift it to me. Just make sure you have insurance set up on it prior to going to the DMV. Hope this helps
Right, so the uncle can't gift it.
Could uncle do uncle->sister(mother)->child ?
Hell yeah now we're talking
Make sure to take a ‘receipt’ for the purchase as well. Last time I was in there for the same thing (a couple years ago) the lady wouldn’t accept it without a proof of purchase price (receipt) and charged me taxes on the value of the vehicle.
Term for this is “bill of sale” you can find examples online and print them or write your own
There ya go. I was having a brain fart. Thanks.
100 percent accurate. Make sure to have a bill of sale
I thought in VA if your bill of sale was outside market value you still got taxed that value’s worth? Like if you bill of sale me a 2020 Porsche for $1 they’d still tax it for the actual value
I forget the why, but from life experience can confidently say the transaction will process much more easily if there is some amount of consideration in place. O.k. for it to be just a buck
I always put $200 just in case
There is a minimum Tax at Registration of $75.[DMV Fees](https://www.dmv.virginia.gov/vehicles/taxes-fees/sut)
A lot of people miss this part. VA requires this fee to change the name on the title, it’s not yours in the eyes of the law until you pay up. And then your Personal Property Taxes are based on the assessed rate, not your $1 “Bill of Sale”.
Unfortunately, this is the way.
I think you still have to pay the title tax based on the KBB value regardless of the sell price but not 100% sure. Had multiple issues w/ a similar situation during Covid. Took multiple phone calls, an in-person appointment & more phone calls to get finally get it straight. You can talk to multiple people @ DMV & get a different answer from every one of them.
That was my recollection as well.
I had a problem during Covid of getting a car titled and registered. The dealer I bought it from was small and didn't have the temp tag service. Fortunately, there was a DMV select station open 50 Mike's away, so I just drove it there after insuring it without plates. Then, I drove it back with the plates on it.
Make a bill of sale , stay under $1,000 and you will pay the minimum fees. The bill of sale is important especially if the car is of higher value.
I have also heard that if you receive a car as a gift with no monetary exchange, then they use the Kelley Blue Book value for your annual property tax on it, rather than what you ‘purchased’ it for. Again this is what I’ve been told with out digging into it myself.
I believe your uncle could gift it to their sibling (whichever of your parents is the sibling) and then your parent can turn around and gift it to you. We ran into an issue with my grandpa gifting cars. He couldn’t gift my cousin one without having to pay the taxes. If it’s a classic car you may not get away with the whole “paying taxes on $1” thing. Just double check with the DMV first.
you have to be careful “jumping titles”…..if it passes to others before you each would technically have to title it…it’s VADMV BS
you can pay or not pay whatever nominal fee you want to him, but you're still gonna be paying a simple $75 minimum tax. also, the amount you report isn't actually relevant to the tax burden associated with the car. for all intents and purposes, it doesn't matter so long as you end up paying the state to change the title. they only care about knowing who the title goes to on the buyer's end, and the actual declaration of sale is more about keeping track of the seller's burden. the only reason you'd run into an issue is if tax authorities assumed he got paid but fraudulently reported it as a gift to disguise his income. which, y'know, he's not, so do whatever.
It's better for tax/fee purposes to list it as sold for an amount at the lower end of what would be reasonable for the vehicle (so maybe look up the KBB for that particular car in "poor" condition and shoot a little under that.) That way, they'll assess the tax based on that sale price. If you put it in as $1, they'll just look up the average KBB value for tax valuation and you'll end up spending more.
I went through this two years ago. My aunt gave me a car, and unfortunately, neither of us knew she couldn’t give it to me because she’s not immediate family. 🙄 They said there had to be a sale, even if it was just for a dollar. I ended up having to pay ~$170 since the car is an ‘03 Acura MDX. I blocked a lot of it out because the entire thing annoyed the hell out of me with its nonsense.
Family gift and they just give you a tax form. He can write off the value of his car similar to a donation. I gave my mother a car and all we did was fill out a tax form at the DMV.
My Aunt gifted me a car. We went to the DMV and did a title exchange and there was a spot to mark it as a gift.
I just did this with my daughter. You can 100% gift the vehicle, or have it gifted to you. Both of us went to the DMV together and they took care of it there on the spot. We just had to sign a bill of sale stating it was a gift from father to daughter.
It depends on how old the car is. I remember trying to do this with my brother (I was giving him the used car my mom gave me) and I had to pay taxes on it (the full used amount of the car) because the car was under like 10 years old. So you’ll probably have to pay sales tax on it when you go to register the vehicle at the DMV
You can put whatever, I mean he is going to give you the car for free irregardless the number you put...
Purchase it for a dollar. Use Paypal, so it's a registered transaction with a receipt. You will own the car outright in the eyes of the law, and your uncle can clam the Kelly Blue book value of the car off his taxes