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View Full Version : Not pay tax on car given as gift? Possible?

fuhreal
Apr 3rd, 2006, 10:33 PM
Ok, so my super cool brother in law, has given his old car (97 Grand Am GT) and I'm thinking when I go switch the ownership over to me, as before when doing this I usually have just purchased a car. So I have to provide a receipt for the amount paid, and I pay taxes on it, if more than the black book value of the vehicle, however if less than, i pay taxes on the black book value.

Is there any way to not have to pay taxes at this time? Or at least less than black book value?

I mean, the guy is giving me the car because I can't afford a new one so why do I have to pay the government taxes on something thats not being sold?

I hope there is a way.....
Rehan
Apr 3rd, 2006, 10:36 PM
Transfer from brother-in-law doesn't qualify for the exemption.

http://www.mto.gov.on.ca/english/dandv/vehicle/used.htm:
Payment of retail sales tax is not required when a vehicle is a gift and is being transferred between close family members, which only includes a spouse, parent, step-parent, grand-parent, son, daughter, grandson, granddaughter, son-in-law, daughter-in-law, father-in-law or mother-in-law. Only one tax-free transfer per vehicle is allowed every 12 months.
fuhreal
Apr 3rd, 2006, 10:38 PM
Ahhh darn.. maybe he can give it to my sister, then to me :D .. that would save me some money... but then it would have to be more than one registration. :(

dangit
jcl
Apr 3rd, 2006, 10:38 PM
How about receiving a car as a gift from a cousin???
nx2k
Apr 4th, 2006, 12:53 AM
How about receiving a car as a gift from a cousin???
depends who you get at the MTO window.
if u lucky, u can get away with it, if u not, then u pay their assesed value, if u in between, then u can claim a small amount and get away with paying tax on wholesale value
fuhreal
Apr 17th, 2006, 05:57 PM
Ok..

so here's the plan. To save about $100 bucks or more.

My brother in law signs the car to his wife (my sis), she gift's it over to my pop, he gifts it to me.

$40.00 vs tax on a book value 4000 car...(give or take)
Rehan
Apr 17th, 2006, 06:07 PM
Ok..

so here's the plan. To save about $100 bucks or more.

My brother in law signs the car to his wife (my sis), she gift's it over to my pop, he gifts it to me.

$40.00 vs tax on a book value 4000 car...(give or take)
Did you miss the "Only one tax-free transfer per vehicle is allowed every 12 months." part of what I posted before? It means that you'd have to wait 24 months plus 1 day to be able to transfer three times per your plan.

Read point #5 of the form at http://www.trd.fin.gov.on.ca/userfiles/page_attachments/Library/3/Rsie_f1157.pdf?N_ID=3
kmltick
Apr 17th, 2006, 06:08 PM
I thought you had to wait atleast a year to transfer it again, otherwise you pay the tax.

dang rehan.. you're quick lol..

I think you also have to get it safety certified each time do you not?
fuhreal
Apr 17th, 2006, 06:11 PM
Did you miss the "Only one tax-free transfer per vehicle is allowed every 12 months." part of what I posted before? It means that you'd have to wait 24 months plus 1 day to be able to transfer three times per your plan.

Read point #5 of the form at http://www.trd.fin.gov.on.ca/userfiles/page_attachments/Library/3/Rsie_f1157.pdf?N_ID=3

OMG i did miss that part. Grrr..... I DON'T WANNA PAY THE FRICKIN TAX ON THIS CAR!!!
jetway1212
Apr 17th, 2006, 06:24 PM
Then dont bother to register it in your name, just drive it as primary driver. All you need is your brother-in-law's signature to put it on your policy
actng
Apr 17th, 2006, 07:18 PM
dun be cheap.
you gotta pay to play.
fuhreal
Apr 17th, 2006, 07:19 PM
dun be cheap.
you gotta pay to play.

Dude.. i'm poor ok
jetway1212
Apr 17th, 2006, 09:29 PM
you gotta pay to play.


Thats ignorance
illusion81
Apr 17th, 2006, 09:35 PM
Dude.. i'm poor ok

Sell the car your bro in law is giving you :cheesygri
Ben Jr
Apr 17th, 2006, 10:06 PM
whats the tax, $200? Come on guy, it'll cost your family $50 driving you to the MTO all those times...the tax will be the least of your expenses.

Dude.. i'm poor ok
jcl
Apr 17th, 2006, 10:09 PM
Ah **** it, i just paid the tax. lol
fuhreal
Apr 17th, 2006, 10:09 PM
whats the tax, $200? Come on guy, it'll cost your family $50 driving you to the MTO all those times...the tax will be the least of your expenses.

Buddy.. $200 is alot of money thats not even the cost of daycare for my kid for a week

In regards to this entire topic unfortunately looks like the financing are going to force me to have only one car....

Soon to see an as is saturn up in the BST :(
Bullseye
Apr 18th, 2006, 07:23 AM
If you can't afford $200, then maybe you should reconsider whether you can afford another vehicle at all? With an old car like that, especially a lower end GM, you will run into some repair bills before too long that make $200 look like nothing.
Blunt
Apr 18th, 2006, 07:52 AM
Autotrader Prices for a 1997 Pontiac Grand AM:
LOW MEDIAN HIGH
$1,950.00 $3,990.00 $5,995.00

So, even in the high range, your paying only $420.
If u can't afford $420, u shouldn't be driving a car.
fuhreal
Apr 18th, 2006, 09:15 AM
Autotrader Prices for a 1997 Pontiac Grand AM:
LOW MEDIAN HIGH
$1,950.00 $3,990.00 $5,995.00

So, even in the high range, your paying only $420.
If u can't afford $420, u shouldn't be driving a car.


I take it your not too bright.

I've already said due to something came up, I'm going to need to get rid of one car, so .. i can't even pick up this grand am. So ... guess your right... i shouldn't be driving a car...