Car Title Question

[bwdlionfan]

My wife's parents gave us the title to her car several months ago, but we haven't taken it to the courthouse here to get it officially changed to be in our names. The main reason we haven't done this is because we have been told by people that there is a certain way to do this to make sure that her parents (and us) neither have to pay taxes on the transfer of ownership. I've been told there is something about putting a sale price on the title and not doing it as a gift and I've heard to do it as a gift. Can anyone clear this up for me?

[bobcat1]

I'm not certain but I think they go by the value of the car now even if it's a gift. If you devalue the sale price they still charge what the car is worth. They like to tax cars every time they change hands.

[bwdlionfan]

I'm not certain but I think they go by the value of the car now even if it's a gift. If you devalue the sale price they still charge what the car is worth. They like to tax cars every time they change hands.

Perhaps I'll just let him keep "ownership" of the car then.

[Farmersfan]

Bobcat1 is correct. They now use bluebook value to figure taxes because so many people were transferring ownership of 10K value cars that they claimed they only gave 1000dollars for................. although i don't know would do such a thing? :eek:

[bwdlionfan]

I just called the courthouse here and they said if it's done as a gift then we'd only pay $45. I have heard conflicting reports from people I know and on here, so I think I'll just let her parents keep ownership.

[AP Panther Fan]

I just called the courthouse here and they said if it's done as a gift then we'd only pay $45. I have heard conflicting reports from people I know and on here, so I think I'll just let her parents keep ownership.

It is a simple process and in your best interest to go ahead and transfer the vehicle now, before something happens to her parents. Dealing with heirship affidavits is much more difficult.

The Donor and Recipient sign an Affidavit of Motor Vehicle Transfer (Form 14-317) in front of a notary public. You also have to fill out and sign a Texas Title Application to get it in your/her name. The gift tax is $10.00, the new title is $33.00 and there is a $2.50 fee to transfer the registration.

What some of the other folks are referring to is paying sales tax based on the presumptive value, which applies on the "sale" of used vehicles.

[44INAROW]

Perhaps I'll just let him keep "ownership" of the car then.
that's up to you - but come "claim time" there could be serious problems!!

[bwdlionfan]

We are going to go ahead and have the title transferred over tomorrow

[Tx Challenge]

There is such a thing as a gift tax in Tx. $45 transfer sounds about right. I am not sure if any different paperwork has to be filled out or not, so I would check. Otherwise they take the greater value of what they consider is the value, and what you say you paid. You can dispute it, but you have to take the vehicle to have it's value determined at your expense, at an authorized place.

It is always best to call or stop by. Sometimes the info is still not correct. I have 2 cars. One is registered in TX and one in Ca. At first I was reading on the CA DMV sight that I had to change my license over. I called and found out different. Then I called my insurance agent to find out if I could still get multi car discounts. I was told no.

I buy the car and the transfer title ask for a CA licenses #. I explained I had already checked, and was told I didnt have to, and it is illegal to have license in 2 states. She told me I misunderstood. Finally I got thru to a supervisor, and there was a code they use, and I had to show proof a recent bills in TX. I got my title.

I also found out the insurance was wrong as well. My particular agent could not put me on the same policy. That is true. After researching and a few phone calls, what I had to do is find an agent that was licensed to sell insurance in both states. Not easy, but I found one, so now both cars are tied together and I get the multi car discount!

[bobcat1]

It is a simple process and in your best interest to go ahead and transfer the vehicle now, before something happens to her parents. Dealing with heirship affidavits is much more difficult.

The Donor and Recipient sign an Affidavit of Motor Vehicle Transfer (Form 14-317) in front of a notary public. You also have to fill out and sign a Texas Title Application to get it in your/her name. The gift tax is $10.00, the new title is $33.00 and there is a $2.50 fee to transfer the registration.

What some of the other folks are referring to is paying sales tax based on the presumptive value, which applies on the "sale" of used vehicles.This correct. Thanks for clearing that up.

[Ranger Mom]

Sooo.....is there a gift tax in Texas or not??

[AP Panther Fan]

Sooo.....is there a gift tax in Texas or not??

Yes, $10, but the Donor's relationship to recipient has to be one of the following:

Parent/Stepparent
Grandchild
Guardian
Child/Stepchild
Sibling
Decedent's Estate
Spouse
Grandparent
Qualified Nonprofit 501(c)(3), donor or recipient