Bill of Sale?

[dmartin88]

I'm going to be giving my son a truck that I own and have a question about providing a Bill of Sale. I've found several legal forms and think I have that covered but wondering how we should go about filling out the purchase price. We'll exchange at least $1 as part of the transaction and our/his intention is to pay the appropriate sales tax due on the vehicle when he registers/titles it in Texas. My initial take is the Bill of Sale should reflect the actual money that changes hands, then the value for tax purposes will be handled separately. We believe the car is worth $9500 based upon looking at blue books and other similar sources. My question is whether the Bill of Sale should represent the value of the car in a transaction like this or whether that is sorted out separately when applying for title/registration. Thanks in advance for any advice/input--as I said, our full intention is to pay the appropriate taxes on the exchange, just need to get the paperwork right.

 

[Wannafish]

Are you sure you owe sales tax?
In Michigan there is no sales tax when vehicles are sold to children/parents/brothers.
Something worth checking into...in both Virginia and Texas.

Just my .02 worth.

 

[hazmat]

In MA, for a private party sale, the state tells you what your car is worth & you need to pay sales tax on that number when you register it. Then we are lucky enough to pay excise tax on it every year after that...

If you buy it from a dealer - then they use the bill of sale to determine the sales tax. Most dealers handle the paperwork for you & get you the plate. Of course they charge you $100 doc fee, but at least I don't have to take time off work.

I'm not a lawyer, but I don't think the bill of sale is of much use to you - signing over the title transfers ownership...

Call your local DMV.

 

[BillG_in_TX]

There will probably be just a $10 Gift Tax and no sales tax, but check this page for answers to all your questions. All of the forms are available for download on this page. Here's some of the fees found on Form 130:

SALES AND USE TAX COMPUTATION
$90 New Resident Tax
$10 Gift Tax
$28 or $33 APPLICATION FEE FOR CERTIFICATE OF TITLE
(Contact your County Tax Assessor-Collector for the correct fee.)

 

[tc35dforme]

<font color="blue"> $90 New Resident Tax </font> /forums/images/graemlins/shocked.gif

So much for me moving to Texas!!!

I would doubt they'd want me anyway /forums/images/graemlins/smirk.gif /forums/images/graemlins/grin.gif

 

[Bird]

Very good, BillG. Dave, get that form 130-U for both of you to sign for him to bring with him to Texas, and no money has to change hands between you and him if it's legitimately a gift.

And that form serves as your "Bill of Sale"

 

[dmartin88]

Thanks for the feedback and information. I've been to the website and saw the $10 gift tax item and frankly, was hoping that was all we'd have to pay. I haven't found an explicit explanation of how a gift should be handled but will look again. We have the form 130 and will fill it out, just wasn't sure if there should be a bill of sale as well and how it should be filled out. Didn't realize the form 130 could serve as the bill of sale but after looking at it again, looks like it will fill the bill, we'll just use $0 for the sales price and go from there.

 

[OkeeDon]

Florida is also very forgiving on the sales tax for a vehicle sold between blood relatives. Simply mark the title "Love and Affection" for the value.

 

[MDSteve]

In MD we needed to have a letter stating this was a gift and have a notery sign and seal it.

steve

 

[Bird]

Dave, one thing I forgot to mention is that he will need to take his "proof of liability insurance" with him when he goes to apply for the Texas title. So all he needs is the old title signed over to him, the 130-U form, the proof of insurance, and a little money to the fees.

I just got back from doing that same thing for my youngest daughter. She made a deal Friday evening to buy a used Chevy S-10 pickup for my grandson. I went and got the pickup yesterday and did the paperwork, then went and submitted the title application for her this morning.