Taxes on a vehicle if traded for something?

[Bosco]

I've got a car that someone wants to trade me for guns/ammo. How do you work the taxes on that?

I think he values it around $1200 so if I trade him $1200 worth of items what do I pay as far as sales tax goes?

Could I just say I spent $200 on it and pay next to no tax? It's a 1994 with 200k+ miles on it but I trust the guy and he says it's reliable but a little "quirky". I'll know more tomorrow. Just trying to figure out how much money I need to actually transfer it into my name. Thanks in advance

 

[WOLFIE]

He will have to transfer the title to your name at the DMV or a private business that does titles and they can help you with the tax. Someone more knowledgeable than me could help you better. You may have to prove it is a TRADE deal. Definitely wait for someone more knowledgeable than me to post.

 

[Nomad.2nd]

"act of donation"

Look it up

 

[Magdump]

"act of donation"

Look it up

This. Still legal in Louisiana. And most notary will have the one page form that is no more complicated than a bill of sale.
Just pay the cost of title and plate.

 

[beauxdog]

Don't think the "Act of Donation" will work, believe it has to be a relative. The DMV will put a value on the vehicle on their own and this is what you pay taxes on. On a vehicle that is 20 years old there won't be a whole lot. The days of getting around taxes and the DMV have long past.


Beauxdog

 

[bravo3]

Don't think the "Act of Donation" will work, believe it has to be a relative. The DMV will put a value on the vehicle on their own and this is what you pay taxes on. On a vehicle that is 20 years old there won't be a whole lot. The days of getting around taxes and the DMV have long past.


Beauxdog

I don't think they do actually. I just bought a car and had 500 dollars on the bill of sale, which I had to present with the title. I paid cash for the car, and paid taxes on the 500

 

[Barry J]

If you put too low a value on the bill of sale, they will catch on and charge tax on the value of the car from published reports. Put 3 or 4 hundred dollars and you should be ok. Look up the value in Kelly Blue Book or NADA.

 

[MOTOR51]

Don't think the "Act of Donation" will work, believe it has to be a relative. The DMV will put a value on the vehicle on their own and this is what you pay taxes on. On a vehicle that is 20 years old there won't be a whole lot. The days of getting around taxes and the DMV have long past.


Beauxdog

You CAN do an act of donation and it does not have to be a relative. They will not put a value on it automatically at DMV.

 

[Magdump]

http://web01.dps.louisiana.gov/omv1...6cdc000806eb/8437cdcd914552e1862564bb0074bc3c

 

[Magdump]

You CAN do an act of donation and it does not have to be a relative. They will not put a value on it automatically at DMV.

Thanks. As I just did this last year, I'm thinking "long past" is a little inaccurate.

 

[George]

OMG Has changed their value chart. You can't claim a car is way less than the value anymore. They caught on.

Sent from my SAMSUNG-SM-N900A using Tapatalk

 

[noob]

I believe the DMV will charge you the NADA value of the car if you tell them it's too low. But in the case of my supra, I told them it wasn't running. I think I paid ~180 dollars in taxes.

 

[Robbie]

I just did a donation - father to son, we valued it at $5000.00.
$109.00, for all.

 

[1911arkain]

I'm with Robbie and Magdump.

Act of Donation is still valid. I would still tell them $600 for the car, just in case.

 

[JadeRaven]

Tax fraud is still tax fraud.

However it is very, very common, especially in Louisiana.

There is no exclusion from vehicle sales tax when property other than a vehicle is traded on another vehicle.

 

[Nomad.2nd]

Don't think the "Act of Donation" will work, believe it has to be a relative. The DMV will put a value on the vehicle on their own and this is what you pay taxes on. On a vehicle that is 20 years old there won't be a whole lot. The days of getting around taxes and the DMV have long past.


Beauxdog

It doesn't.

 

[eddytows]

Depends on the parish you live in. Whatever the sales tax is in your parish that's what you pay at DMV plus reg fees and plates

 

[radney]

The price you'll pay is whatever you "agree" when getting your notarized bill of sale. Then you'll owe the taxes when you register it. Otherwise you'll owe no sales or capital gains tax.

 

[Pas Tout La]

We did an act of donation on a horse trailer.