myclue

if its out of state it doesnt really matter. only if you buy a car instate in NJ and you write down the purchase price a bit low, you will get a mail in the letter from IRS just to confirm you bought it for that amount

vader1

I have been asked to do this before and do not comply. I put in the sale price. I try to give somebody a fair deal on the car, usually taking lower than it is worth, if they can't pay full boat on the taxes, screw em. The two private sale cars I bought, I paid full tax.

I have sold to one kid who bought my MR2 and I sold it to him for $1,000 less than I could have gotten because he seemed like a nice kid. He crossed out the value I wrote in, put it at less than half of what I sold it to him for to save a couple hundred bucks and the DMV called me. I told them he switched it and that was not the true selling price.

I pay full tax when I buy a new car, about $3300 in sales tax on the car I just ordered, so I don't feel it is necessary to let someone else skate because they buy used. The money goes for better roads, pay your share.

Plus, I also believe in honesty.

zhashmi

Leave it blank or put a lower number, theres no need to make the buyer pay more money for nothing.

In most states as long as you have a bill of sale you would have proof that you sold the car, at which point it's not your problem. You wouldn't be the first person to do this.

TommyDeVito

We should all pay as much tax as we can and make others do the same. It's the American way

Chris S

Not true, you're still legally required to report the sales price, but they tax you on the greater of what you report or the Stated Presumptive Value (SPV). SPV on my '04 Z06 was $11,850, and i Piad taxes on a much higher price.

Mr.E.G.

Overstatement much?

I didn't mean that what you write on the title has no bearing at all, I mean it doesn't matter in the sense that you can't outsmart them, as in, "It doesn't matter what small amount you write on the title, they can still tax you more than that amount." Did I really need to clarify that?

And if you really want to quibble over semantics, it's Standard Presumptive Value.

Chris S

Not trying to argue on semantics, just that (a) in my case, SPV was less than 1/2 of market value; and (b) you're legally obligated to pay taxes on the greater of the 2 #'s.

Slithr

I would leave it blank before I put in a low amount. At least that way you aren't committing fraud an if he choses to low ball the selling price to his state, that's his business and you aren't mixed up in it.

Mr.E.G.

That was essentially my point. I guess I should have explained it better.

kolyan2k

All states are different