I have never bought a vehicle from an actual individual before, only from a dealership, so I'm unsure how this works...
A relative of mine is giving me their old vehicle as a gift. They live in a different state than from what I do. I remember something about them making sure they specify "Gift" so i do not have to pay taxes too.
My question is, do I have to be there in the state my relative lives in, or can I drive the car back to my state without them signing it over to me and take care of the title here?
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| Reply » Title Transfer |
I am not a resident of Pennsylvania so what I have to say is hopefuly an educated guess.
Your relative should sign the title as the seller indicating you as the buyer. For the selling price they should indicate "Gift". Pennsylvania may or may not charge you a sales tax as a function of the laws of Pennsylvania when you title the car in PA. (In Maryland, where I live, members of the immediate family may transfer ownership without the payment of a sales tax.) Check with the PA DMV for an answer.
As I see it the real issue is this: Will the relative allow you to drive the car to PA using their tags? If so you shouldn't have a problem. Otherwise you need to find out if their state of residence will issue a temporary tag (such as a 3 day tag) which would allow you to drive the car back to Pennsylvania.
You really need to get on the phone to the Pennsylvania DMV to get your answers.
Hope this helps.
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| Reply » Title Transfer |
good info i live in pa . but to save your butt. put down $100 and pay $7 tax. because if they question it . you can say it was given to you for 100.00 from a relative. but if you put down GIFT... you better know the gift law's. i dont but its not worth the words gift. it open's a can of worm's. in fla if a car is sold for 100.00 and its worth 10000.00 some times the state will say you owe us 700.00 for value of the car. but from family you should have no problem. private party you will maybe.they see it daily a 40k car sold for 200.00 they are not stupid . as everyone does this. but family is family.
bob/philly
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| Reply » Title Transfer |
This is all from a MA standpoint, but a lot of it is pertinent. Almost no state will allow an interstate transfer w/o sales tax. Most states only allow transfers tax-free between direct family, and some states even require you live at the same address. As to driving, if you're on their tags and insurance it's fine, but once they terminate the insurance it's no go. On the temp tags, I know MA residents cannot drive ANY vehicle with temp tags because of the way our registration is tied to our insurance. You may be in a similar boat. Check with your RMV at http://www.dmv.state.pa.us/ and contact them, you'll get an assured answer and it's always better safe than sorry when you're dealing with vehicles. Good luck!
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| Reply » Title Transfer |
The easiest thing to do would be to have them fill out the title as far as the sale goes and put a low $ sale amount, they can then overnight the title to you, you take it to the registrar and get it registered and titled in your name, take the plates you get and go pick up the car and drive it back...of course some of this can be different depending on the state but in general you should be able to handle the transaction this way.
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| Reply » Title Transfer |
like i said. put a very low sales tax as its a gift. when state sends you a letter saying you owe them $500 in taxes based on nand. guide. you write them a notorized letter to have them sign for it stating this was a familt deal and not a tax scam. truth is the truth. is the truth...gift. no way that's like saying thief. not wanting to pay..i would out down $500 for purchase = $35 tax in pa..if you gave the car to your brother for free would he have to pay 1400.00. if car was valued @20k..dont think so
bob/philly
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