If I sell a car to a parent, do they have to pay sales tax?

I'm located in Caliornia, and want to sell a car for cheap or free to my parents. How can they not pay taxes, or do they? Does the DMV verify how much it was sold for or just the price you tell them?If I sell a car to a parent, do they have to pay sales tax?
Lowest amount that DMV will accept is $1.00,they don't accept a ';free'; bill of sale cause they can't tax ';free';.Registration each year will be about $56.00.They won't investigate, just put the amount on the form they'll give you.Think there's a space on the back of the pink slip for sale price.If I sell a car to a parent, do they have to pay sales tax?
When you sell OR give a car to a parent it's called a ';Family Transfer'; and is NOT subject to smog or tax. but you need additional Form REG 256 Statement of Facts. Section A check first box. Section B check boxes 4 %26amp; 5. turn it over and sign the bottom of the paper. That form and the title is all you need. It costs $15 for the transfer.


You can download the form off the internet.





Your car is not a gift in this case...it's a family transfer. But if it was a gift then:


Only if the car was a gift do you write in the cars KBB value. If you put down $1, that would raise red flag for the BOE (Board of Equalization) and it would come back and bite your ***. The reason to put down the real value is not for tax reasons. It's what the DMV uses next year for calculating registration fees.
Of course not. If you sell stuff at a garage sell, same thing. The only thing you need is pay for the transfer of ownership via pink slip. Just get the paperwork done and pay for a small fee, less than $100 I bet.





You could give it for free, but the pink slip fee is the only cost the DMV cares about.
Rules on this vary from state to state. Check with your local DMV for tax exemption rules regarding sales to parents/siblings. In WI, we do not have to pay tax if we buy from a parent/sibling/spouse. Good luck %26amp; happy motoring.
Within reason they believe the information you provide to them.





You can't say you sold a 2006 Mercedes for $250 to avoid sales taxes. They aren't that stupid down at the DMV. Be truthful, that's the best policy.
You can't donate a car or vehicle unless the recipient is a bonafide charity. Go online and type in the make/model/year and see what the lowest value - and that's what you'll write down in Bill of sale and on DMV form.
Sell it for 100.00 dollars and pay the 7 to10 in sales tax. Then you are never haunted by state tax man.
Yes.