Selling the car to family member

[dahaz22]

Brother thinking about buying an used Model 3 - I could potentially sell him mine as better deal and get a new one myself.

Does sale tax still apply between family members? I read family transfers are tax exempt. I guess he would just give me a check and I'll just transfer the car to him?

 

[Big Dog]

not sure adult siblings count, at least according to the parenthetical. (But then, how many minors own cars?)

https://www.dmv.ca.gov/portal/uploads/2020/06/reg256-1.pdf

 

[dahaz22]

not sure adult siblings count, at least according to the parenthetical. (But then, how many minors own cars?)

https://www.dmv.ca.gov/portal/uploads/2020/06/reg256-1.pdf

Yeah been doing research after i posted this.

It does mention that "use tax" is exempt between family members transaction - am guessing that is what is the official name of the sales tax.

I was wondering if anyone here has done it.

 

[Big Dog]

I've transferred titles without the tax, but the transfer was to an immediate family member --not an adult sib -- as described on the form.

If you have AAA, call or visa their office and ask.

 

[derkan]

the form implies a sale to an adult sibling is not one of the tax exempt transfers

sales tax is when the seller/retailer collects the tax at the point of sale (like in a store) and reports and submits it to the government. its associated with the act of selling.

use tax is if the seller doesn't collect the tax (for whatever reason - usually because the seller doesn't have to), and the buyer later has to remit it to the government (as the user).

I'm not an expert - just basic info

 

[dahaz22]

the form implies a sale to an adult sibling is not one of the tax exempt transfers

Yeah that makes no sense.

4.035 Transactions Not Subject to Use Tax - California DMV

"Family transfer sold between a parent, child, grandparent, grandchild, spouse, domestic partner, or siblings (if both are minors related by blood or adoption)."

BOTH have to be minors??! how many minors own and want to own a car? wth, so confusing.

By that verbiage above, I guess you can do Tranfer to parent, then parent can just xfer to the other sibling.

I might have to get AAA membership just to find out.