Transfer from my son to myself, do I need to pay tax in CA?

[Roy2001]

I think father/son co-owning and son taking the tax credit would work. Then at some later time remove the son from the title. This would only work if there was no loan.

Until I see the written document, I won't risk it.

Sales tax for used car sucks. I have a friend who sells used cars. He said some used cars were sold many times that the sales tax government collected is way more than original MSRP.

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[ExCivilian]

So if I bought it I would have to pay the sales tax of about $6,000. Then selling it to friend they would also be taxed about another $6,000.

Check if your state has a sales tax exemption for resale. CA does.

If you buy it with intention to resale it you don't have to pay the tax but good luck getting anyone to honor selling you something without tax. Supposedly one can petition CA to get their tax paid back...again good luck with that!

 

[Lolat]

Investigate thoroughly. Being a ex-native CA person, I suspect CA will not miss a chance at revenue generation.

 

[Txxthie]

Why cant OP co-own the vehicle and the son gets the credit, which is taken off at the point of sale. If it’s a cash deal it’s even cleaner. Both are relatives and live in California. This option only works if there is trust with both parties.

I think father/son co-owning and son taking the tax credit would work. Then at some later time remove the son from the title. This would only work if there was no loan.

This will work with a cash deal and only one qualified owner taking the credit. It’s easy to input the information into TurboTax to receive the credit.

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