What is needed-Title transfer
INCORRECT
The tax deal did just change recently but the gift loophole is still there. there is a $10 tax on gifts.
http://www.dot.state.tx.us/frequentl...stions/vtr.htm
What has changed is the taxes for people that buy cars. You used to pay taxes on teh purchase price of the car. you could say you bought it for $1 and you would pay taxes on $1.
If you buy a car for $1 today you have to pay taxes on the "value" (similar to blue book value) of the car.
you can avoid this by having the person give it to you as a gift. and then you can give them a cash gift since you are such a nice person. or you could have the car appraised at a very low value and you can pay the taxes on that.
The tax deal did just change recently but the gift loophole is still there. there is a $10 tax on gifts.
http://www.dot.state.tx.us/frequentl...stions/vtr.htm
What has changed is the taxes for people that buy cars. You used to pay taxes on teh purchase price of the car. you could say you bought it for $1 and you would pay taxes on $1.
If you buy a car for $1 today you have to pay taxes on the "value" (similar to blue book value) of the car.
you can avoid this by having the person give it to you as a gift. and then you can give them a cash gift since you are such a nice person. or you could have the car appraised at a very low value and you can pay the taxes on that.
Very good information. I appreciate all ya'lls help with it.
what if the car does not run you still have to insurance on it ??? i got a 83 ford i need to switch the title on its 25 years old this year so ha no taxes but it does not even run its a project.
lets say you get a project car from someone that you want to turn into a track car. you dont need insurance on that. then there is the question... do you really need to keep up with the title on it at all? if its a track only race car there is no need for a title unless its a class requirement. I dont believe top fuel drag cars have titles, registration, or insurance, you would basicly be in the same situation as they are in.
