Car Gift Question

[Stankfoot]

<p>Someone gave me an old car for free. It needed work but I needed a &quot;starter&quot; car for my son. When I go to register it does it make more sense to say it was a gift or say I paid some nominal amount ($100) for it? Is there some sort of &quot;gift tax&quot; in NY?</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p>

[Don Stugots]

i am the first person to say "screw the man", or "damn the man", since Empire records was just on HBO, but in this case say you paid 100.00 bucks for the car. It will make your life easier and you are paying them only 10.00 bucks. What kind of car is it? What kind of work does it need?

[Stankfoot]

<p>A 1996 Nissan Altima - it was filthy and needed struts in the back and new tires, oil change, etc.</p><p>It cleaned up nice!&nbsp; </p>

[PapaBear]

<p>From the <a href="http://www.nydmv.state.ny.us/regtransfer.htm#sell" target="_self">NY DMV website</a>...</p><p></p><h2>Transfer the Ownership of Your Vehicle</h2><p><strong>To sell or give your vehicle as a gift, provide the new owner with the proofs and the documents described below:</strong></p><p><strong>Proof of ownership.</strong> Provide the new owner with <a href="http://www.ronfez.net/messageboard/replytotopic.cfm/Forum/69/Topic/49839/currentpage/proove.htm"><strong>acceptable proof of ownership</strong></a>. Make sure that you complete the <a href="http://www.ronfez.net/messageboard/replytotopic.cfm/Forum/69/Topic/49839/currentpage/regtitle.htm#salvaged">odometer and damage disclosure statements</a> on the back of the title certificate or on <a href="http://www.ronfez.net/messageboard/replytotopic.cfm/Forum/69/Topic/49839/currentpage/forms.htm#mv103">form MV-103</a>. <strong>Complete the proof of ownership document carefully. The DMV does not accept a title certificate or another proof of ownership document that indicates the information or signatures were changed or erased.</strong></p><p><strong>Proof of purchase price or gift.</strong> Use <a href="http://www.ronfez.net/messageboard/replytotopic.cfm/Forum/69/Topic/49839/currentpage/forms.htm#dtf802">form DTF-802</a> (Statement of Transaction for Sales Tax) to show the <strong>purchase price</strong> of the vehicle or that the vehicle is <strong>a gift</strong>. The seller or donor completes the affidavit on page two of the form and <strong>gives the form to the new owner. The new owner </strong>completes the first page of the form and gives the form to the DMV office. The DMV office collects the sales tax from the new owner if the new owner is required to pay any sales tax. If the new owner applies for <strong>an exemption</strong> from NYS sales tax for a <strong>reason different from a gift</strong>, use <a href="http://www.ronfez.net/messageboard/replytotopic.cfm/Forum/69/Topic/49839/currentpage/forms.htm#dtf803">form DTF-803</a> (Claim for Exemption).</p><p></p><p>Damn... that's complimicated! In VA, you just write &quot;Gift&quot; as purchase price, and you don't pay tax on it.</p>

[Alice S. Fuzzybutt]

Granted I haven't lived in NY state for eons but I thought there was a $1 transfer fee.

[PapaBear]

<strong>Alice S. Fuzzybutt</strong> wrote:<br />Granted I haven't lived in NY state for eons but I thought there was a $1 transfer fee. <p>This applies to the issue of &quot;sales tax&quot;. There are fees in most (if not all) states, but the gift issue applies to &quot;sales tax&quot;. Also... even if it's a gift, it doesn't lower what you have to pay for any annual &quot;property tax&quot;.</p><p>That reminds me, though... When it does come to property tax, Stankfoot may want to check into the state laws about that, too. Property tax is based on Blue Book value, but if the car has a lot of age or mileage, some states allow you to have the value of the car lower than what Blue Book says it is.</p><p>Damn... they have a lot of ways to get our money!</p>