Auto transfer question

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It is my understanding that for a vehicle under a certain age maybe 10 years they will look up the book value, and tax you on that. Over 10 years they will accept whatever you put on the bill of sale. I Know that they are not going to miss out on sales tax revenue by just accepting whatever you put down, I am sure someone else will be along that has accurate information.

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This is correct. They know that no vehicle with a clean title is being sold for $100. So they'll look up the book value and charge sales tax based on that.

Just curious, what kind of vehicle?

Can you gift a vehicle to a family member and not have to pay taxes on it?

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Yes you can. You just do the act of donation paperwork

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So do you pay $0 in taxes in an act of donation? Or do they look up the value and tax you on that?

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Isn't the difference in value and amount you pay considered income? I think you are supposed to pay taxes on that income. Additionally, he may have some payroll tax obligations. I may be way off, but I would get some some professional tax advice.

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Let me worry about the federal tax implications. I am asking specifically about sales tax in this case.

OMV will aggressively investigate these situations. It’s obvious what’s going on.

You put $100 on the BOS or do an Act of Donation from an LLC to an unrelated owner (and Act of Donation forms typically ask for your relationship to the donor as the donee) for a clean titled vehicle like that and you’re rolling the dice.

I’ve been told by folks who are on regional Boards for the Public Tag Agent Association that they’ve been told the OMV has a matrix of price versus NADA values and everyone that pulls a AOD or a BOS <$1K gets entered into the wrong kind of raffle to win the wrong kind of prize from taxing authorities.

Over a couple hundred bucks in sales tax is a really, really dumb risk-for both you and the company and/or business owner-to take.

But hey...do what you want.