Selling a car for a dollar across state lines (VA to Iowa)
June 20, 2020 12:19 PM
My daughter just graduated from school in the Midwest and starts her post collegiate life next week in Des Moines IA. (Yay!) I own the car she had at college and it is titled in VA. I want to sell it to her for a dollar. How do I do this?
Internet research suggests it is as simple as me completing the change of ownership section of the title and sending it to her with a bill of sale. It's a 2006 Corolla so it's not worth that much anyway.
Do I need to do anything special to make sure she doesn't run into issues on her end?
Internet research suggests it is as simple as me completing the change of ownership section of the title and sending it to her with a bill of sale. It's a 2006 Corolla so it's not worth that much anyway.
Do I need to do anything special to make sure she doesn't run into issues on her end?
Make sure you and she have a sales receipt (your bill of sale) signed by both parties. She will likely have to pay sales tax (or use tax depending what Iowa calls it) based on fair market value, but that is what happens no matter where you sell it.
posted by rtimmel at 12:41 PM on June 20, 2020
posted by rtimmel at 12:41 PM on June 20, 2020
In Rhode Island an immediate family member can transfer the title without paying sales tax. See if that is true where you are in which case it might work to transfer it in VA and have her switch the registration to her state.
posted by Botanizer at 12:46 PM on June 20, 2020
posted by Botanizer at 12:46 PM on June 20, 2020
In Virginia, you can transfer to a family member without paying sales tax. Then I guess your daughter could go ahead and register it in Iowa.
https://www.dmv.virginia.gov/webdoc/pdf/sut3.pdf
posted by skewed at 2:14 PM on June 20, 2020
https://www.dmv.virginia.gov/webdoc/pdf/sut3.pdf
posted by skewed at 2:14 PM on June 20, 2020
Make sure you and she have a sales receipt (your bill of sale) signed by both parties. She will likely have to pay sales tax (or use tax depending what Iowa calls it) based on fair market value, but that is what happens no matter where you sell it.
It definitely won't hurt to have a receipt, but when we "bought" a car from my wife's grandfather in Iowa they didn't require anything. We paid tax on the token sale amount, not the market value. We didn't have a receipt, they just asked what we paid and processed the registration. It was in Johnson County and was a few years ago. (Edit: Jesus, it was 12 years ago...)
posted by the christopher hundreds at 7:28 AM on June 25, 2020
It definitely won't hurt to have a receipt, but when we "bought" a car from my wife's grandfather in Iowa they didn't require anything. We paid tax on the token sale amount, not the market value. We didn't have a receipt, they just asked what we paid and processed the registration. It was in Johnson County and was a few years ago. (Edit: Jesus, it was 12 years ago...)
posted by the christopher hundreds at 7:28 AM on June 25, 2020
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posted by Huffy Puffy at 12:26 PM on June 20, 2020