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Is it possible for me to transfer the title of a car to my ex wife without her having to pay sales tax on the value?

When we were married, we bought her a car. It is in my name because of her poor credit but she made the payments. Can I gift it to her? We are still on good terms and I am just trying to save her some money!

Sparky asked in Cars, Bikes & Transit about 1 year ago | Report

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4 Answers

  • Sho_small
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    Yep. From the WA DOL website:

    "What if I receive a vehicle or vessel as a gift?

    If you can provide proof that the person who gave you the vehicle or vessel paid sales or use tax on the vehicle or vessel, no use tax is due.

    If the person who gave you the gift owned the vehicle for 7 years or more and is from a state or province with sales tax, it will be assumed that tax was paid and no proof is needed.

    If the vehicle or vessel is coming from a state or province without sales or use tax, use tax is due."

    I'd just go with her to a licensing office with your original paperwork to the car and transfer the title into her name. If you/her paid taxes on the car already, you shouldn't have a problem.

    rickibot answered in Cars, Bikes & Transit about 1 year ago | Report
    1 comment by Rev.Enant…
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  • 0prr6_small
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    You can change the name on the title one time per owner/car without having to pay taxes. At least that is what they told me when I did it about 2 years ago.

    Kip Waddle answered in Cars, Bikes & Transit about 1 year ago | Report
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  • Avatar_default
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    If you want to avoid the trouble of gifting it, you can sell it for a low amount, say $500, and just pay the tax on that. I believe there's a certain minimum sale amount before it becomes a gift, (i.e. you can't sell a car for $1).

    Tax is ~10%, so $50 isn't so bad to just be done with it all.

    Mr. John answered in Cars, Bikes & Transit about 1 year ago | Report
    1 comment by Little Red Ryan Hood…
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  • Skull_pumpkin_small
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    Yes. The rules here on how to transfer a title apply to both gifting and a sale.

    Since you're on good terms, you may want to check into the tax implications for her of you gifting it to her, as opposed to you selling it (for an insanely low amount).

     

     

    CleverScreenName answered in Cars, Bikes & Transit about 1 year ago | Report
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