gift or selling price / transfer of title

if you are selling you have no tax consequence. the buyer will have to pay your state sales tax on the purchase price. if you provide a bill of sale the buyer can use that to establish the purchase price or he/she will be charged tax based on blue book value determined by the department of motor vehicles. beyond the moral and legal issue, there is no economic motivation for you to cheat the government out of its taxes. as the seller there are no taxes due from a private sale.

Crazy as it seems, in TX they just ask you how much you paid! No proof, no lesser / greater of this Blue Book or that online service. You simply tell them how much you paid! It's always seemed ridiculous to me, all but inviting cheating.

Chris

But that 2003 BMW M5 that I paid $200.00 for was wrecked, I swear!

pat

You need to pay more attention. Texas just passed the largest tax increase in its history, and your are going to cough up tax money through the nose.

There are six lobbyist for every legislator in Austin. Four of those lobbyist are paid for by other geverment entites, or goverment employee unions (source Dallas Morning News) so it seems you have Goverment of the government, by the government, for the goverment.

Vote for Kinky!

snip; You need to pay more attention

Boy, YOU'RE ASSUMING ALLOT!

But thanks for the heads up on the lobbyists. I think we should change all those "what is 1 million lawyers at the bottom of the ocean?" jokes to lobbyists! Better yet, let's send 1 million lobbyists to the bottom of the ocean for "a good start!"

Chris

I was laughing too hard to reply to M. Cantera.

I have lived in Texas my entire life and have talked to many, many people about politics during the last 22 years or so.

Not one person even came close to Chris D. in clear and concise knowledge, especially of current events, as well as being able to look at both sides of an issue, which is extremely rare in political discussions.

What was that about him not paying attention? ;-)

Pat

Pat, you're too kind! I am happy M.Cantera is paying attention, if more people were doing that we'd all be miles ahead. Bottom line is when the govt declares a garage sale, buyers and brokers come running. Welcome to 'red' America.

Chris

Kind? Not me, I was just making that up. You are just another lemming who believes every piece of news that the media spoon feeds you. Your political knowledge is actually quite sad. ;-)

Isn't it true that more people voted for the winner of "American Idol" than for the U.S. Presidency? I don't think that there is any hope, the water has already started spiraling down the drain. The tub is almost empty.

The heat has finally dropped enough to go play "dodge the deer". I am off for a ride......

Pat

"He who makes a beast of himself gets rid of the pain of being a man" - Avenged Sevenfold

Johnson (re-quoted by Avenged Sevenfold for "Bat Country", a song based on "Fear and Loathing in Las Vegas".)

Here, the selling price can have a minor impact on the annual tag fee. The tax is similar to a fair value tax, and is normally set by consulting a book value. If the selling price is much greater or less than the book value, it can be used to calculate the tax. The book value also assumes an average annual mileage, so, if the mileage is higher than average for the age, the value can be reduced. The classic statement for selling something that needs to be recorded in some way was-- "One (1) Dollar and other considerations" when the exact sale value was to be avoided in a recorded transaction.

Also well said!

Chris

Chuck, that all makes allot of sense and I'm really not sure why we have this huge tax loophole (you can bet something like the Used Car Dealers Association has a bunch of lobbyists in Austin ;-) but we don't talk too loudly of it here lest we might loose it. Most of our tax 'loopholes' are just nooses in camouflage ;-)

Chris

I agree that it is a good analogy, I am just worried about offending cockroaches with the comparison......

Pat