Anyone know about car expenses

[ldavern]

If I give someone a car.. what kind of expenses are they going to incur.. will they have to pay sales tax on something thats given to them,, what about title transfer and temporary plates or insurance.. and anything else I might be forgeting..I'm embarrass to say I have no idea because my husband handles all this,,(and he's not here now) But I'm hoping to give this car to someone that needs it,, I have to check with the lawyer tommorrow to make sure it's okay to do,, I don't see why I couldn't since I'm allowed to sell it...TIA for any information:)

[adair]

am sure that depending on the state, they will want some sort of sales tax (for the value of the car).

It is the person to whom the car belongs to be responsible to insure it as far as I know. Most states require autos to be insured now before they will issue tags for it.

[captorquewrench]

the gift tax, if any, will varies depending on your local taxes and approximate value of the car. it's not a sales tax.

they will still have to pay for title, registration, etc.

[jaybird]

You might be better off 'selling' the car for a $1 or something. Here in IL, used car sales tax is based on the selling price, not the value (if I remember right) The tax, license and title (and other 'paperwork' fees) are all the responsibility of the new owner.

[jaybird]

AND if you give away OR sell the car, make sure you write up a written contract, as is sort of thing, with the price and names, date, etc. The new owner will need some sort of 'sales receipt' for taxes and license.