How do I transfer a car title to a family member in PA?
The Certificate of Title document serves as the DMV title transfer form.
Both the buyer and the seller will need to fill out the appropriate sections.
The seller must complete Section A on the back of the title.
The mileage on the vehicle must be indicated and the document must be signed in the presence of a notary..
Is it better to sell or gift a car to a family member?
The buyer is responsible for sales tax on the actual sale value of the vehicle, and you aren’t liable for penalties even if the buyer never pays. This may make selling a car a better option than giving it to a friend or family member, which could cause the gift tax to come into play.
How much does it cost to gift a car in PA?
As of 2015, the Pennsylvania Department of Transportation’s (PennDOT) published rate for a vehicle title and tag transfer is $50. In most cases sales tax will be charged as a separate fee, though no sales tax is required when a motor vehicle is gifted to another owner.
Can I sell a car to a family member for $1?
During the transfer of ownership process, you won’t have to pay any capital gains tax since you’re not likely selling the car for a profit at $1. However, your daughter will have to pay whatever rate of sales tax your state charges on used vehicles when she goes to transfer the title.
Is it better to gift a car or sell for a dollar?
According to Carbrain, you may or may not have to pay taxes when you give or receive a car as a gift. … While some car owners consider selling the car for a dollar instead of gifting it, the DMV gift car process is the recommended, not to mention more legitimate, way to go.
Can I sell my car for $1 in PA?
Vehicles received as gifts are not subject to sales tax. … In many instances, taxpayers are incorrectly informed by licensing agents that a minimal purchase price (e.g. $1) must be reported on the MV-4ST, even if the vehicle is a gift. This is not correct.