Selling a car: Question on bill of sale

[StarsFan4Life]

My wife and I are selling one of our cars. The couple came out to look at it yesterday and are willing to give us what we want for it. They did ask if we would put down on the bill of sale a significant amount less than what they actually gave us. I said I wasn't sure if I could, but I would look into it.

Isn't this tax fraud? Should I avoid this?

 

[xSauronx]

odds are no one would bother looking in to it...but you dont really have a good reason to do it, either (unless maybe youre having one hard hell of a time selling the car). yeah, they clearly want it to keep their vehicle taxes low when they register it.

 

[jupiter57]

Yes, it is Tax Fraud.
However, if they pay cash, you're less likely to get caught.
(It is common practice amongst private sellers, dealers won't take the risk).

I like when I sell a $12K - $15K vehicle & the buyer tries to save a couple hundred dollars this way!
You can pay $15,000 for a truck, but want me to lie to save you $2-$300.00?

 

[waffleironhead]

Significant? no. It will probably set off flags at the taxing agency and lead to a follow up investigation. My wife bought an older grand am that needed a bit of work, she paid 500 for it when the BB value was ~3000. The taxing agency didnt believe us till we showed them the list of receipts for all the repair parts we put into the car.

 

[Jesta]

Check state laws. You used to be able to get away with that here in Texas, but they now use NADA values to determine taxes.

 

[Brainonska511]

Would I help a stranger commit tax fraud so they can save a few bucks and then have it (possibly) come back around to bite me in the ass?

No.

 

[Cal166]

Back in the late 90's when I purchased my car from a private seller and asked them the same thing on the bill of sale. I think I paid $8200 for the car and on the bill of sale for $6500 to save some money registering it. Unless the DMV inspects the car in person, they can't say from a NADA book what the car is really worth.

 

[Elganja]

If the bill of sale, states a value significantly less then KBB/NADA, supplemental documentation will need to provide to the DMV while registering the car (for the buyer). If they don't, they will be charged tax for the KBB/NADA value regardless of the bill of sale.

This varies state to state...