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Do I have to pay sales tax on a gift car?

  • I live in Monroe County, NY and my friend's Dad got a replacement car and he has nothing to do with his 1999 Kia Sportage. So he wanted to give it to me, if I paid for the parts to fix it, which I did. The car is up and running and the title just needs to be transferred to my name. I have the DTF-802 form and I was looking at it. If I list it as a gift from him, (we are unrelated so I must fill out section 6) can I put the price as $0? And the tax on that would be $0? I don't think it's tax evasion because it is a gift and no one pays taxes on receiving Christmas gifts unless you bought it. Am I obligated to pay sales tax on the car itself? It's valued at $3,000 in the Kelly blue book so it doesn't qualify for the gift tax and the tax would be around $240 if sales tax did indeed apply. It is a gift so I do not think I am obligated to pay the taxes, except the tax on the registration, title, and license plates and those small fees. But MUST I pay sales tax on this gift car?

  • Answer:

    you will probably have to pay the sales tax on the value when you register with the DMV recipients of gifts are not taxed on them

Aaron Smith at Yahoo! Answers Visit the source

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Yes, but get an act of donation. No tax. useually a one time thing.

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