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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! |
#2
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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. |
#3
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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 |
#4
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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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