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Discussion Starter · #1 ·
Has anyone here bought or sold a car from/to a private seller. I always buy from dealers. My frind is buying my celica and i was just wondering how the taxes work. Does he give me that tax money and I pay it or he pays it? and where do you pay the taxes.
thanks
 

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The buyer will pay taxes when they register it I believe.
 

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Discussion Starter · #5 ·
portopotti said:
KrysyGT said:
The buyer will pay taxes when they register it I believe.
The buyer has to pay the tax. You will have to report it as income at the end of the year though.
oh really? so he gives me the money and I save it until i do my taxes?
 

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I payed 9,500 for my celica from a private seller Taxes came about to $563 when I went to register the car. ****! I remember cause those $563 are still hurting my pockets
 

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twistedGTS said:
oh really? so he gives me the money and I save it until i do my taxes?
I tried to look it up on the dmv website, but it wasn't really that clear. I'm under the impression that you are going to put a certain number on the title that you sold the car for. He'll then register the car with that title, and have to pay tax based upon that amount to the DMV. You are supposed to declare that money at the end of the year as income earned. That part is up to you though.
 

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Discussion Starter · #8 ·
oh ok i see what you mean. Well i'm just paying off my loan so it's not really income. So he has to pay DMV the taxes based on what i put as the sale price of the car. Got it.
thanks everybody.

btw, i'm selling my car for $8k, 00 GT-S, it has 92k miles. blue pearl paintjob, kyb/H&R suspension, ADR wheels, WW lip kit all around and fiber images CF hood. Sounds reasonable right?
 

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KrysyGT said:
The buyer will pay taxes when they register it I believe.
Since he is your friend, you could save him money by stating on the bill of sale that it was a "gift". It seems a little far fetched, but it works and he doesnt have to pay taxes on it. In Mass, you need a special form that you get from the DMV and have to get signed by the insurance company and the seller. It does work though. I've done that on 2 cars I've bought from 2 different sellers I didn't personally know. Saves a few hundo ;)
 

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Discussion Starter · #11 ·
ahh good idea, thanks! :thumbup:
 
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