what consequences are there in a deal like this???
Can you sell a car to a relative for 1.00 ? sure you can.......
dont see why selling LAND would be any different..............afterall it belongs to YOU....or your RELATIVE.
Quote from: 7387chevynut on May 14, 2012, 08:45:18 PM
Can you sell a car to a relative for 1.00 ? sure you can.......
dont see why selling LAND would be any different..............afterall it belongs to YOU....or your RELATIVE.
Yup, no consequences.
quick claim deed
as long as your not doing anything in the next 6 months that the $$$ from a real sale , would be questioned
like divorce bankrupse or a court issue where the law or a lawyer could prove you did it to skip out on something.
yup, just llike big dog said, use the quick claim deed process and you will be fine. we did it a couple years ago without changing any money
I would call my accountant and ask about gift tax returns if the value of the asset transfered is more than $13,000. As for land, I would check with the local tax assessor to make sure the proposal A cap is not opened up.
Just my .02
my grandparents sold the cabin to my dad for $1 without issue...
Just because you did not get caught does not mean it is correct. The local tax assessor can back charge the property taxes for many years.
The IRS can go back to the date of transfer.
Ask the professionals.
Quote from: 7387chevynut on May 14, 2012, 08:45:18 PM
Can you sell a car to a relative for 1.00 ? sure you can.......
Nope, bought a lincoln off my uncle, put $1 for the selling price. The lady at sos said i had to put down more then that because its value HAD to be more then that. I said no, i bought it for this much, she says thats not the fair market value of the car. Told her it was what i paid, so that is the value. Basically she said thats not enough to tax me on. I got tired of argueing so i put $100. She said someone might contact me from the state about some car appraisal. Never heard nothing back, but the lady sure was pissed bout it...
And it doesnt matter home much or little you pay for a house/property, you're still gonna have to pay taxes on the value. I bought my house for $27,000, but i pay taxes (SEV) for a $60,000+ house. I went to the twp, and asked why i was paying so much, because i paid less for the house. the house isnt valued on what it sells for(which is backwards in my mind), its assesed for what its worth.
Property taxes are required to be paid at the township/city rate times 50% of the true fair market value of the property.
Fair Market value is what a willing seller would sell for and a willing buyer would purchase for, with no undo influance or pressure.
Sales between related parties are assumed to be not at fair market value. Under audit, the burden of proof is on the taxpayer to prove the transfer to a related party was at fair market value.
Do what you all think is correct, but consult with your professionals.
Quote from: J.C. on May 15, 2012, 04:36:28 PM
Quote from: 7387chevynut on May 14, 2012, 08:45:18 PM
Can you sell a car to a relative for 1.00 ? sure you can.......
Nope, bought a lincoln off my uncle, put $1 for the selling price. The lady at sos said i had to put down more then that because its value HAD to be more then that. I said no, i bought it for this much, she says thats not the fair market value of the car. Told her it was what i paid, so that is the value. Basically she said thats not enough to tax me on. I got tired of argueing so i put $100. She said someone might contact me from the state about some car appraisal. Never heard nothing back, but the lady sure was pissed bout it...
Relation doesn't pay taxes on vehicle transfers. So you could have had whatever price you wanted, you wouldn't have paid the taxes on it.
And I have had the same problems with my 2002 Polaris Scrambler I bought in pieces for $300. Got it running, decided it was worth transferring the title. She got the book out and said the value was near $2,000. Told her I bought it in pieces not running, and she told me I'd have to prove the costs of labor into fixing it. I glared at her as I asked her how to prove labor on something I fixed ? She then said I might have someone out to appraise the quad. I flat out told her it will be in pieces again if that is the case.
Nothing. I get sick of stuff like this though.
Quote from: ToughBowtieTruck on May 17, 2012, 02:40:42 AM
Quote from: J.C. on May 15, 2012, 04:36:28 PM
Quote from: 7387chevynut on May 14, 2012, 08:45:18 PM
Can you sell a car to a relative for 1.00 ? sure you can.......
Nope, bought a lincoln off my uncle, put $1 for the selling price. The lady at sos said i had to put down more then that because its value HAD to be more then that. I said no, i bought it for this much, she says thats not the fair market value of the car. Told her it was what i paid, so that is the value. Basically she said thats not enough to tax me on. I got tired of argueing so i put $100. She said someone might contact me from the state about some car appraisal. Never heard nothing back, but the lady sure was pissed bout it...
Relation doesn't pay taxes on vehicle transfers. So you could have had whatever price you wanted, you wouldn't have paid the taxes on it.
it has to be immediate family, i gave a 95 thunderbird to my uncle (free of charge) he went to the DMV and they wanted him to pay FAIR market value for the car, so i had to go in, and write 200 on the title, otherwise they wanted to make him pay tax on like 1900
Quote from: bmwallace_88 on May 17, 2012, 02:44:50 AM
Quote from: ToughBowtieTruck on May 17, 2012, 02:40:42 AM
Quote from: J.C. on May 15, 2012, 04:36:28 PM
Quote from: 7387chevynut on May 14, 2012, 08:45:18 PM
Can you sell a car to a relative for 1.00 ? sure you can.......
Nope, bought a lincoln off my uncle, put $1 for the selling price. The lady at sos said i had to put down more then that because its value HAD to be more then that. I said no, i bought it for this much, she says thats not the fair market value of the car. Told her it was what i paid, so that is the value. Basically she said thats not enough to tax me on. I got tired of argueing so i put $100. She said someone might contact me from the state about some car appraisal. Never heard nothing back, but the lady sure was pissed bout it...
Relation doesn't pay taxes on vehicle transfers. So you could have had whatever price you wanted, you wouldn't have paid the taxes on it.
it has to be immediate family, i gave a 95 thunderbird to my uncle (free of charge) he went to the DMV and they wanted him to pay FAIR market value for the car, so i had to go in, and write 200 on the title, otherwise they wanted to make him pay tax on like 1900
That's why My truck was first titled to my dad, brother of my Uncle, then later to me, son of my dad. Heh heh heh. But really, I wasn't old enough to get a vehicle titled when I got the truck.