Death and taxes

[SanchezDano]

I'm in California, working on finding a vintage trailer to restore. As I look at out of state trailers, is there anything I can do to minimize the tax hit when I purchase and register the vehicle?

[Drathaar]

Is per chance the tax based on 'purchase price'? Hmmmm, perhaps there might be a decimal point error in the bill of sale. I know that's not honest, but I hate a tax like that.

[drboyd]

There's an exemption for sales between "family members."

https://www.dmv.ca.gov/portal/dmv/?1...es/howto/htvr1

[ROBERTSUNRUS]

Originally Posted by Drathaar

Is per chance the tax based on 'purchase price'? Hmmmm, perhaps there might be a decimal point error in the bill of sale. I know that's not honest, but I hate a tax like that.

Hi, in California, DMV has a magic chart that shows normal value for most anything. If you bought a car for $1,000.00 but they show it for $10,000.00, they will tax you on the higher amount unless you can prove that the vehicle was damaged or missing the engine and trans. But then they won't license it without an inspection of a complete vehicle. Pay the piper and move on.


Oh, and California DMV knows all of the games.

[paiceman]

Move, we are and we are not in CA, but probably leaving for tax purposes only

[55AS]

The good news is that an unrestored trailer of vintatge age will not be on their chart and a a very low purchase price is believable.

[Rich W]

I think most states rely on Kelly Blue Book. I had to call our PVA and discuss our AS with them. Looking it up in KBB by year and model we found the taxable price at considerably lower than our purchase price. Trailers depreciate rapidly and I would think a vintage trailer's residual value would be in the hundreds.

KBB doesn't publish travel trailer values on the web but NADA does, at least back to 1966. You can go here and get an idea:
2015 Airstream Travel Trailer/5th Wheel Prices, Values & Specs - NADAguides

I seriously doubt that they use the purchase price as the taxable value. More than likely it's KBB vs. purchase price, whichever is higher. It's not their first rodeo, ya know.

[NavyCorpsman]

I lived in San Diego for 6 years. One of the reasons I did not return was the screwed up way the govt was run. You guys really take a beating. Do you have relatives in another state that you could license it in?

[mtbguy]

I would take some photos of interior with everything demolished when you restore it and get a cheap bill of sale to back it up.
My family has lived in CA for 20 years and are in process of moving because they are tired of all the B.S. with the bankrupt state trying to tax them for all the bad decisions /leadership of the state.

[paiceman]

For a very expensive purchase we made - 38' motorhome we titled and licensed it in a MT trust and avoided all PA taxes. Paid some for an attorney in MT to set it up and then had a MH in PA with a MT license and title. Never became an issue with anyone. In my opinion for a trailer like an AS and the cost its not worth the effort, probably would need to be over $150,000 purchase for me to consider going the MT route again.

[featherbedder]

Neighbor took pu out of her corp. 3 yrs. later retitled her name was taxed over $1000 after all taxes pd. when pur Move over Calif. Illinois getting close to same prob.

[ROBERTSUNRUS]

Hi, California doesn't use Kelly Blue Book. When a new vehicle is first registered, It is assigned a two letter code. This code designates it's original value. Then they have a declining chart showing age and this chart also has a bottom line so at one point the cost will never go lower. The code usually is something like "AN" or "AS" so they just look at the code and check the code on the age chart. Since California is the car buying capital of the world, they have virtually everything listed.


I asked about this once and was shown the chart and my cost for a vehicle in dispute.

[KJRitchie]

California is running out of money and water. They know where they can get the money but not more water.

Kelvin

[bobzdar]

Set up an LLC in Montana and register it to the corporation. That's how people get around the personal property tax in VA.

How to Form an LLC in Montana | Nolo.com

I, personally, don't advocate it. I live in VA and use it's services, so I pay for them as such. If you don't want to pay to live in CA, don't live in CA (imo).

[mnmhays]

I had no trouble in CO with the '66 based upon sale price (I paid lower than NADA) but when it came to another area of fees that was based upon original TV...they were at a loss, as their system only goes back 30-35 years. My guy at the DMV was prety cool about it and guessed low to minimize the impact to me. I wish I could still pay Michigan prices for trailer plates though.