Car Vehicle Tax Exclusions for Gifts

[j0hn0b]

I'm located in Massachusetts. I have a question about the gift exclusion for a vehicle.

I am getting a vehicle from my father, a 2005 Camry. I am paying $5,000 for this vehicle, but it's valued much higher by KBB and NADA. I was wondering if I can use the gift exclusion to avoid all or some of the sales tax on the vehicle when I register it. MVU-26 is the form to fill out and doesn't require putting a purchase price.

From the site, in order to register the vehicle I need the following documents:

*The previous owner's title, if a titled vehicle (model year 1980 and newer), or
*The bill of sale, if a non-titled vehicle, and
*The completed Sales Tax Exemption form (MVU-26).
*If presenting the previous owner's title, be sure the date sold, the odometer reading and the purchase price (GIFT if the vehicle was given to you), have been completed on the back. The previous owner(s) and you must sign the back of the title.

If anyone can help clarify this for me that would be great. The car does have a title that I will be receiving and I took out a loan to pay for the car.

 

[justalayman]

from MassDOT:

Vehicles Transferred from Family Members

You are exempt from paying sales tax on a vehicle transferred from any of the following family members: father, mother, brother, sister, husband, wife, son, daughter. The exemption does not apply if transferred from a grandparent, cousin, uncle or aunt.

The vehicle involved in the transfer may either be purchased by you or given to you as a gift from the family member.

It isn't a matter of anything being a gift. It is specifically concerning an intra-family transfer.

 

[j0hn0b]

That's what it seemed to be, but I didn't know if the fact that I am paying for it would matter given the following from their website as well

If presenting the previous owner's title, be sure the date sold, the odometer reading and the purchase price (GIFT if the vehicle was given to you), have been completed on the back. The previous owner(s) and you must sign the back of the title.

Because it wasn't a gift, I would have purchased it. I didn't know if it had to be a gift AND transferred within a family. Thanks for your help!