Paying for a bike with cash, and title

[abscr]

I've bought a bike from a private owner and paid in cash, and I was wondering what people usually do at the DMV. Do most people come clean with what they paid or do they shed the amount by any? I know when my dad signed over a car to me, he just put "GIFT" and the DMV didn't really say anything.

So, I was just wondering about others' experiences when it comes to this stuff.

[koji52]

You can only make a gift to members of your family. I think it differs from state to state as to whether gifts are only acceptable between immediate or extended family members.

If you're buying from someone not related to you, I would suggest that you report the full amount you pay. It's not worth possibly (even though it's a small chance) getting caught. You're only going to be paying sales tax on the purchase so it's not really worth the risk IMO.

[jonnythan]

You should have a bill of sale that lists the amount you paid.

Use that.

[ofblong]

where I am you have to put the purchase price amount on the title.

[camthepyro]

Yep, you gotta put the purchase amount on the title. Of course, that doesn't mean you can't say you paid a little less...

[NewGuy]

You can only make a gift to members of your family. I think it differs from state to state as to whether gifts are only acceptable between immediate or extended family members.

If you're buying from someone not related to you, I would suggest that you report the full amount you pay. It's not worth possibly (even though it's a small chance) getting caught. You're only going to be paying sales tax on the purchase so it's not really worth the risk IMO.

Not true with regard to federal tax laws. A gift would fall under income. If someone gives you a $15,000 Softail you are legally obligated to report it as income. There is a gift exemption for family members, that would make that income exempt from taxes. It used to be $10,000 max in any tax year, but it may have changed.

[NewGuy]

I've bought a bike from a private owner and paid in cash, and I was wondering what people usually do at the DMV. Do most people come clean with what they paid or do they shed the amount by any? I know when my dad signed over a car to me, he just put "GIFT" and the DMV didn't really say anything.

So, I was just wondering about others' experiences when it comes to this stuff.

Well I was honest about the sale price when I bought my bike for cash, and even had a receipt of sale signed by the seller, myself, and a witness. You might get away with being dishonest about the price, or claiming it was a gift, but you'll be sacrificing your integrity, and possibly committing a felony. Some states are VERY, VERY aggressive about pursuing people who try to cheat on sales tax, and vehicle registration fees, both with administrative sanctions (penalties and interest) and in some cases criminal prosecutions.

[NorthernPete]

everytime I have bought a used vehicle, I have asked for a bit of a reduction of the price I paid vs the price on the reciept I get, say its 1000 doallar car, I'd ask for a 700, 800 dollar reciept. but in the end, it depends on how easily you sleep at night. If depriving the government of their 20-30 bucks would keep you up at night.....

also, I hear of people "paying" 100 bucks for a 1000 dollar item or what not, that could raise eyebrows Im sure. just make it reasonable.