Need help. A question about car trading

[-DSM2NR-]

I might trade my car directly for another car (meaning I give the guy my car and he give me his) without any money involved. I'm talking about straight out trading cars.

Now, my question is.......If I trade cars directly will I have to pay any tax on that car that I traded mine with? I know that it's required to pay tax each time you buy a car but what if you trade cars?
And what should I put down on the title or whatever since I'm trading cars?

Please help me out here

 

[95blackGsTurbo]

Just write down on the title's that you sold the cars to each other for $1. That is what I did when I traded my old Grand Prix for another DD. Had to pay like $0.11 tax when I licensed the car.

 

[tsunari]

Just write down on the title's that you sold the cars to each other for $1. That is what I did when I traded my old Grand Prix for another DD. Had to pay like $0.11 tax when I licensed the car.

^^^ Agree . . . however some states have a 'minimum' purchase value (like MD), so even if you 'buy' the car for $1, you'll have to pay taxes based on a minimum purchase value of like $600 er something like that. Changes from state to state . . .

 

[-DSM2NR-]

Oh ok. But where can I found out what the minimum purchase value in my state is?

 

[talonTSIDriver]

Call your local DMV. When i traded a truck for a 1g AWD talon the guy at the DMV asked me how much the car is worth, and he put that down for purchase price even though it was a straight up trade.

 

[-DSM2NR-]

I hope my state doesn't have a minimum value

 

[luvmygst]

I live in the communistwealth of virginia. (possably the worst stale law wise ever) I had to pay 3.5% of the book value of my car even though I only paid $600 for it. I bought it in parts and had to pay taxes on what they said its worth in perfect condition. Its the law and it sucks. This was lat year I have a 95 gst and they said it was wort $5400. I tried to get the girl behind the counter to give me that much for it but no luck(j/k). WTF