Trading cars?

[1320goat]

Does anyone know if you can avoid tax by trading your vehicle for someone else's vehicle with no cash involved? Some people say yes , some say no. I was hoping it worked this way, but I'm thinking they make it as if you both sold your car to each other. If that's the case, how do they determine the values of each car? Any help is appreciated.

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[PaxtonShelby]

Yes - if no cash is exchanged then no sales tax is due. At least that was the case the last time I did it a few years ago.

[went9s]

Yes - if no cash is exchanged then no sales tax is due. At least that was the case the last time I did it a few years ago.

Yes just did it 2 months ago

[1320goat]

Thanks guys that's what I wanted to hear.

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[ttk53]

Any person can also "gift" one car a year to any other person.

[PaxtonShelby]

Any person can also "gift" one car a year to any other person.

So it no longer has to be a family member? That doesn't seem right - the state would lose all kinds of sales tax revenue that way.

[ttk53]

So it no longer has to be a family member? That doesn't seem right - the state would lose all kinds of sales tax revenue that way.

I have gifted two cars in the last 3 years to non family.

[PaxtonShelby]

Interesting - I'd think the state would be skeptical. I'm not doubting you - but you have to admit that is really odd.

[1320goat]

That is interesting. I hear so many different stories about what you can and can't do.

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[03 OW SVT]

Best thing to do is go to a notary and ask. I know I sound like Mr. Obvious but that's what I'd do. Lol