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-   -   Buying a car out of state from a relative (http://www.autobanter.com/showthread.php?t=72441)

Zagnut103 August 16th 06 01:44 AM

Buying a car out of state from a relative
 
Hello,

Sorry if this is the wrong group to ask this..

I was wondering if someone could give me some advice. My mother, who
resides in NJ, is aquiring a car from her sister who lives in Florida.
She doesnt want to charge her for the car but we also dont want to get
stuck with a heavy tax bill. (its a used car, probably has a value of
about $2-3k) We also need to figure out the insurance situation in
order to be able to drive it back up.

Whats the best course of action?

Could she just sign the title over and mail it to NJ so that my mother
can get insurance and register it up here? What would be the tax
consequences of that in NJ? Would it be better not to 'give' the car
away...rather sell it for a few hundered and pay some tax?

Or, should she get an insurance binder in NJ.. go to Fla, transfer
ownership, then drive the car back? (ive been told you can give a car
to a relative in FL without tax consequences)

Were going batty trying to figure this out in order to do it legally
and not get zonked with a tax bill.

Thanks!


Shawn Hirn August 16th 06 03:55 AM

Buying a car out of state from a relative
 
In article .com>,
"Zagnut103" > wrote:

> Hello,
>
> Sorry if this is the wrong group to ask this..
>
> I was wondering if someone could give me some advice. My mother, who
> resides in NJ, is aquiring a car from her sister who lives in Florida.
> She doesnt want to charge her for the car but we also dont want to get
> stuck with a heavy tax bill. (its a used car, probably has a value of
> about $2-3k) We also need to figure out the insurance situation in
> order to be able to drive it back up.
>
> Whats the best course of action?
>
> Could she just sign the title over and mail it to NJ so that my mother
> can get insurance and register it up here? What would be the tax
> consequences of that in NJ? Would it be better not to 'give' the car
> away...rather sell it for a few hundered and pay some tax?
>
> Or, should she get an insurance binder in NJ.. go to Fla, transfer
> ownership, then drive the car back? (ive been told you can give a car
> to a relative in FL without tax consequences)
>
> Were going batty trying to figure this out in order to do it legally
> and not get zonked with a tax bill.


You can find all of NJ's auto registration details on the web at
http://www.state.nj.us and as far as insuring the car is concerned, your
mom should simply contact her insurance agent.

gpsman August 16th 06 04:52 AM

Buying a car out of state from a relative
 
Zagnut103 wrote: <brevity snip>
> Or, should she get an insurance binder in NJ.. go to Fla, transfer
> ownership, then drive the car back? (ive been told you can give a car
> to a relative in FL without tax consequences)


Her present insurance will provide identical coverage for another
vehicle for 30 days. Any longer and it lapses.

I think most states determine taxes and licensing fees for used
vehicles using independant references, maybe NADA, to determine value.
-----

- gpsman


Mike T. August 16th 06 01:18 PM

Buying a car out of state from a relative
 

"Zagnut103" > wrote in message
oups.com...
> Hello,
>
> Sorry if this is the wrong group to ask this..
>
> I was wondering if someone could give me some advice. My mother, who
> resides in NJ, is aquiring a car from her sister who lives in Florida.
> She doesnt want to charge her for the car but we also dont want to get
> stuck with a heavy tax bill. (its a used car, probably has a value of
> about $2-3k) We also need to figure out the insurance situation in
> order to be able to drive it back up.
>
> Whats the best course of action?
>


According to NJ DMV, vehicles being titled to immediate family members are
exempt from sales tax. So the smart way to do this would be for the sister
to fill out the title showing that the car was 'sold' to your mom for ONE
dollar. Then send the title by registered mail, return receipt requested,
to your mom. Then your mom goes to the DMV to get a new title for the car
from NJ. As she is an immediate family member, she will be exempt from
sales tax, but she will still need to fill out sales tax forms. She will
also need to pay registration fees.

Don't know how NJ works, but somewhere along the line she will need to
contact the insurance company to add the car to her insurance policy. She
will also probably need to get the car inspected within X days of
registering (7?, 10?). So it would be best to register the car right before
she flies down to florida to pick it up. -Dave




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