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CA bill of sale for a gifted vehicle?

Motoxxxloak

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My sister is going to "gift" me a car. Do I need a bill of sale or can I just go online and complete a "Notice of Transfer and Release of Liability"?
https://www.dmv.ca.gov/portal/dmv/detail/online/nrl/welcome

From there, I will keep the car about a week or two and fix a few things. I might sell it or gift it to someone else in need. When that time comes, will I just complete the same process?
 

Xring01

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Dont do that....

Why? Because as a gift, CA DMV will look at the KBB / NADA Value, and charge you sales tax at that rate.. then you have to pay that..

Have her give it to you, but also get a Bill of Sale for a low ball number... avoid paying the high sales tax
 

Motoxxxloak

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Dont do that....

Why? Because as a gift, CA DMV will look at the KBB / NADA Value, and charge you sales tax at that rate.. then you have to pay that..

Have her give it to you, but also get a Bill of Sale for a low ball number... avoid paying the high sales tax

Normally i'll write low numbers on the bill of sale, like $200-$300 but wasnt sure if gifting it was better.
 

Motoxxxloak

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There is a specific form you need to complete and take with you to AAA or DMV.

Its the form that allows gifts from a family where you can avoid sales tax....complete the form and have your sister sign over the title

https://www.dmv.ca.gov/portal/dmv/detail/vr/family

So then what I should do is, fill out that form and have it gifted to me. Then, when I sell it, sell it for low on the bill of sale?
 

Motoxxxloak

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There is a specific form you need to complete and take with you to AAA or DMV.

Its the form that allows gifts from a family where you can avoid sales tax....complete the form and have your sister sign over the title

https://www.dmv.ca.gov/portal/dmv/detail/vr/family

OR, should I just draft a bill of sale and have the person who is going to buy it from me sign it and have it only change hands once? I plan to have it in my possession for a week or less.
 

ChumpChange

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OR, should I just draft a bill of sale and have the person who is going to buy it from me sign it and have it only change hands once? I plan to have it in my possession for a week or less.

Depending on the value of the car, this can be an option. If it's a higher end vehicle where the buyer will most likely be financing, a bank will only cut a check to the registered owner which will still be your sister.
 

LargeOrangeFont

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So then what I should do is, fill out that form and have it gifted to me. Then, when I sell it, sell it for low on the bill of sale?

You can sell it normally after the transfer. Gift car to you tax free, pay the transfer fee and the car is then in your name.
 

sirbob

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I wouldn't worry about low balling a number when you sell it - that would be the buyers issue not your at that point.
 

RitcheyRch

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Motoxxxloak

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Depending on the value of the car, this can be an option. If it's a higher end vehicle where the buyer will most likely be financing, a bank will only cut a check to the registered owner which will still be your sister.

Carmax would only give my sister $1k for it, so, value isnt too high.
 

Motoxxxloak

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I did this when I given (actually bought) a car from my uncle. I went to AAA and it was a flawless transfer.

Did your uncle have to get it smogged or did you? Tags are good until May but I was under the impression the car had to be smogged before it is "sold".
 

LargeOrangeFont

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Did your uncle have to get it smogged or did you? Tags are good until May but I was under the impression the car had to be smogged before it is "sold".
If you follow the tax free process to transfer between family, you are given a smog exemption, there are a couple restrictions on that I believe.
 

96motorhead

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I've always been told that there is no tax on a gifted item from family member to family member. I can verify this because I was gifted a jet ski a couple years ago and I wasn't charged any tax. This was in CA by the way.
 

Motoxxxloak

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Ok so here is what will transpire. I rather just have her sell it to the person I know wants to buy it this way I dont have to deal with it or do any leg work.

With that being said, do I just need a bill of sale from the DMV website, the pink and to fill out the release of liability online?
 

LargeOrangeFont

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Ok so here is what will transpire. I rather just have her sell it to the person I know wants to buy it this way I dont have to deal with it or do any leg work.

With that being said, do I just need a bill of sale from the DMV website, the pink and to fill out the release of liability online?

If you do it that way it will need to be smogged.

Here is the checklist

https://www.dmv.ca.gov/portal/dmv/detail/vr/checklists/ownership

You can use the old CA Transfer of Title form(they say you don't even need this anymore but i don't risk it), she needs to sign the title to release ownership, and sign off on the mileage on the title, fill out the back of the title on the seller portion and she is done.

Then fill out the release of liability online or send it in. The bill of sale is not really needed.
 

Motoxxxloak

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If you do it that way it will need to be smogged.

Here is the checklist

https://www.dmv.ca.gov/portal/dmv/detail/vr/checklists/ownership

You can use the old CA Transfer of Title form(they say you don't even need this anymore but i don't risk it), she needs to sign the title to release ownership, and sign off on the mileage on the title, fill out the back of the title on the seller portion and she is done.

Then fill out the release of liability online or send it in. The bill of sale is not really needed.

Thank you for this! Really helpful.
 

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I just bought a truck for grandson , bill o sale 100$
 

LargeOrangeFont

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I just did this same process in AZ 2 weeks ago. When buying a vehicle there, you either need a notarized bill of sale, or notarized title, or the owner has to go to MVD and the owner has to sign the title or bill of sale in front of an MVD officer. Kinda weird, but the rest of the process there is really easy, and no sales tax on a private party transfer.
 

coolchange

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If you're just going to flip it in a week leave it in your sister's name. Have her sign off all the paperwork but don't date it.
Unless you're going to drive it.
 

Motoxxxloak

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If you're just going to flip it in a week leave it in your sister's name. Have her sign off all the paperwork but don't date it.
Unless you're going to drive it.

That is exactly what I told her I am going to do. I just filled out all the stuff but told her not to date it and to leave it. I am trying to get her to pay for the smog too but she aint havin it.o_O
 

Motoxxxloak

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I could have transferred the title of 10 cars by now.

One more for you since you seem to be pretty knowledgeable. On the transfer of title/app for duplicate title paper, would there be any benefit of me checking the box that indicates it is a gift with a value of $200 versus me saying it was sold for $200?

Either way, the new guy is not family so he will have to smog but wasnt sure if he would benefit from it being gifted to him.
 

LargeOrangeFont

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One more for you since you seem to be pretty knowledgeable. On the transfer of title/app for duplicate title paper, would there be any benefit of me checking the box that indicates it is a gift with a value of $200 versus me saying it was sold for $200?

Either way, the new guy is not family so he will have to smog but wasnt sure if he would benefit from it being gifted to him.

No, gifts will raise more questions in my opinion. The buyer can pay the $20 in sales tax.

There is no real law for this but officially, the seller is responsible for the smog before the sale of the car. You can sell it as is and tell him he can smog it himself. But then you are giving the new owner another reason not to put it in his name right away.
 

4Waters

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I just did this last week, my dad gifted me a car, we went to AAA filled out the proper form and the back of the pink slip I paid $15.00 and that was it all done.
 

Motoxxxloak

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No, gifts will raise more questions in my opinion. The buyer can pay the $20 in sales tax.

There is no real law for this but officially, the seller is responsible for the smog before the sale of the car. You can sell it as is and tell him he can smog it himself. But then you are giving the new owner another reason not to put it in his name right away.

Makes sense. Straight up it is. Thanks for everything. And yes, seller is responsible I found that out the hard way when I sold my duramax. This is going to a good buddy and he knows what he has to do.


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