How do I legally trade cars with my daughter and not have to pay taxes?

Welcome to fluther, @eddieboy. I don’t know, just wanted to welcome you.

:-)

Thanks Zen! You just answered the question Carl Sagan asked for years…Is anyone out there?

I think Dale is a actual accountant. You might want to drop him a private comment.

I’m not sure either, but have some lurve on me too!

When you do the title switch just say it was a gift and the title bureau will charge you no taxes.

When I bought my motorcycle the person i bought it from told them a lower price to lower my taxes

You could add each other as “co-owners”. That works here (Australia) not sure about where you are. My wife and I are listed as co-owners on all out vehicles, and for a while (when they were younger) our daughters drove cars with us listed as co-owners to allow better insurance rates.

When you swap titles write down/tell the court clerk or whoever does titles and tags where you live you bought the car for $1 then you only pay the sales tax on that $1.

I agree with @buster. When you transfer real estate to a family member you have to show a nominal value in order for a transaction to take place, hence the $1. She gets the car, you get $1 (figuratively).

I had someone give me a car once and we just had to go to the courthouse and get a form to fill out stating the vehicle was a gift so I didn’t have to pay any taxes. We were going to do the I bought it for a $1 thing, but it was just as easy to fill out the form.

Hmm, my parents gave my husband a car and they had to pay $100 for the transfer of title or whatever. I don’t know why, I thought it was standard though. Maybe just where I live?

you can put whatever price on the transfer. so just say 1 dollar as people have said. my neighbor sold me his car and did the same thing even though he actually charged me 5000