Well, I've got some good news and some bad news. Bad news first? I had to sell my project car, the 66 chevelle. The good news...my wife and I are expecting our first child next spring. Well, to make a long story short (and one I'm sure everyone is familiar with), I had to sell my chevelle. I sold it to my brother and it's already in his shop, so that's a bonus. The second thing is, it's torn completly apart for a frame off. My question was, how would I handle the transaction legally? Is it still a vehicle, or just parts? I'd like for him not to have to pay sales tax on it, since it's a big ripoff by the state. Any advice?

Here in California you can make it a gift between family members and pay no sales tax. RichF

Bill of sale for $50

Bill of sale for $50

:yes:
Both parties having the same last name (I assume) and given the age and condition of the vehicle, there shouldn't be any questions.

Great idea, but I think in Texas, all gifts are taxed based on their value. I was really thinking about just selling it to him "officially" for $1 then he can pay out the rest. I just didn't know how well this would fly.

You have several options on your Texas Application for Title:

1.$5 Even Trade
2.$10 Gift Tax
3.Sales Price x 6.25% 66 is not in the new tax books. $500 for the body and frame and the rest is a parts transaction.

Call the Lamar County tax office and check into 1 & 2 before you expose your hand. Your are only asking these questions because the State of Texas makes you. Wonder how many times tax has been paid on this car?

Jon. I found this here. http://www.dmv.org/tx-texas/title-transfers.php

Less Common Title Transfer Situations
Giving a car as a gift: If you wish to hand over your car to another person without receiving payment, you must sign the title over to that person and have the recipient complete a title application. The recipient should present these items to the County Tax Assessor-Collectors office. On the title application, the recipient must check the $10 gift tax box located in section 21.

You have several options on your Texas Application for Title:

1.$5 Even Trade
2.$10 Gift Tax
3.Sales Price x 6.25% 66 is not in the new tax books. $500 for the body and frame and the rest is a parts transaction.

Call the Lamar County tax office and check into 1 & 2 before you expose your hand. Your are only asking these questions because the State of Texas makes you. Wonder how many times tax has been paid on this car?

Standard Presumtive Value only applies to cars less than 25 years old. For even exchange you have to actually have an exchange of vehicles. A true gift is only $10.

Motor Vehicle Sales Tax is a transactional tax. Therefore, the tax is due on each transaction, not just on the first sale of the vehicle.

I don't make the rules but I do understand what it takes to pay for prisons, healthcare, roads, bridges, police support, social services, ag subsidies, etc.

If you have any more questions concerning this try calling The Comptroller's office in Tyler and ask for Bob. I'll be happy to help you. If you PM me I'll give you the number.

(A parts transaction would be taxable under Sales Tax at 8.25%)