Gift of Automobile from grandparent...

[johnny440]

My grandfather who can_t drive anymore gave me his car, which is currently registered in the State of Florida. The market value of the automobile is approx $15,000. I am looking to register the vehicle in the State of New York where I live.

How can I register the car and avoid paying tax?

My understanding is if I report a sale price, I have to pay 7.385% sales tax. If I report a sale price below market value, I will probably be assessed a tax based on the difference between what I said I paid and the market price.

If I report a gift transaction (form DTF-802) to the state when I register the vehicle what will be the tax consequence?

There is a section on the DMV form where you can indicate the gift was from a spouse, parent, or child. If there is less or no tax in this case, does it make sense for my parents to obtain a title, then transfer title to me?

Any thoughts?

[abezon]

Yours is a very state-specific question -- I suggest you visit the local vehicle registration office & say you're going to receive a car from gramps & wonder if you get credit for the sales taxes he paid to Florida.

Are you asking about use taxes or personal property taxes? It sounds like you're talking about use tax -- 'sales tax' you pay when you buy something out of state & bring it into your state for use. [You're actually supposed to pay use tax on anything you order through a catalog or buy from ebay if you didn't pay NY sales taxes on it. Guess how many people actually do that?]

You should get credit for the sales taxes grandpa paid when he bought the car in FL. You'll need a copy of the original sales receipt showing taxes paid.