Hey guys, im in the process of trying to sell my motorcycle. I heard that I could report it as a gift to the buyer so they dont have to pay taxes.. has anyone tried this? If so, how do you do it, or would this be a bad idea?

 

In ohio, If you a title is transfered as a gift there is more taxes to be paid than if you were to sell it for a $1. If the title goes for $1, then the buyer only pays taxes on a $1. Done it on a motorcycle (gift to brother) and an el camino trade.
g/l

 

yeah, you can do it but you'll need to sign an affadavit

 

In washington state you just need to sign an affidavit that the person getting the Title is not paying you any money its a legal paper so I think there are legal consequences if you get caught or if they find out you were paid for it, however if its cash its easy to not report that so if you are doing a cash deal you can transfer as gift no problem, just say you guys are like best friends or something if they ask... anyways if you try to say you sold it for a really low price like lets say $1 they will tax the buyer for KBB value anyways because they don't believe that kind of thing...

 

Yeah good call. Even if you sell it for a certain amount under blue book, the dol still taxes by whatever the fair market value of the car is. I think if you are doing a cash deal, gifting shouldn't be a problem. Just like vstrizheus said above. Good luck.

 

When I had my title transfered from my dad to me in Illinois it cost $16. Because the car was older then 8 or 10 years old their is a flat rate.

 

hmm cool thanks for the info!

 

You can't gift something that new or expensive. They're not stupid...

 

they wont actually investigate it or call me out on it i am pretty sure.... "HEY YOU, YOU CANT GIVE AWAY A BIKE THAT NEW!! WTF!!" :0)