Topic: Giving car to family member

[Ex-airbalancer]

For a case in Ontario
I would like to give our daughter the Prius
It is worth $6000 as trade maybe $9000 to sell privately
So I rather give it away
Do we pay HST , do we need to get it certified?

[tpl]

I think you can give it away to your daughter as she would count as an immediate family member.  I think but don't know for sure, that you would have to get it e-tested and certified.

[Ex-airbalancer]

Hybrid so it does not need etest


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[OliverD]

I can't speak for ON but in NB we can gift vehicles to family members and avoid paying the HST when the car is registered in the new owner's name.

[tortoise]

Yep, it can be transferred tax free.

The transfer document needs to be notarized but that can be at a Service Ontario.

You can also only transfer one vehicle per year tax free.

[Trainman]

Interesting subject as we plan on giving the RAV to our daughter next summer as she heads to university.  I will need to look into the BC regs.

[Ex-airbalancer]

Yep, it can be transferred tax free.

The transfer document needs to be notarized but that can be at a Service Ontario.

You can also only transfer one vehicle per year tax free.

Does it have be certified?

[tortoise]

Pretty sure it does.

[tortoise]

You will need to bring the following documents to a ServiceOntario centre:
a completed sworn statement for a Family Gift of a Used Motor Vehicle in the Province of Ontario form

Definitely call the Ontario Service Center you want to use.  This notarization can be done there but I suspect it depends on the location.  Westgate in Ottawa will do it.

[Ex-airbalancer]

Thanks

[Fobroader]

Isn't it as simple as signing the car over for a $1???

[OliverD]

Isn't it as simple as signing the car over for a $1???

No, because in most places you have to pay tax on the book value of the car if it is sold for less than that so that you can't circumvent paying sales tax.

[Ex-airbalancer]

Isn't it as simple as signing the car over for a $1???

No, because in most places you have to pay tax on the book value of the car if it is sold for less than that so that you can't circumvent paying sales tax.

That is the way it is in Ontario

[Fobroader]

Isn't it as simple as signing the car over for a $1???

No, because in most places you have to pay tax on the book value of the car if it is sold for less than that so that you can't circumvent paying sales tax.

That is the way it is in Ontario

Thats just BS...can't even give a car to your kid without the government getting its greasy fingers involved...... 

[Ex-airbalancer]

Isn't it as simple as signing the car over for a $1???

No, because in most places you have to pay tax on the book value of the car if it is sold for less than that so that you can't circumvent paying sales tax.

That is the way it is in Ontario

Thats just BS...can't even give a car to your kid without the government getting its greasy fingers involved...... 

Have you read any of this thread ?
If you go in and tell them it for your child , you can do it  once pet year tax free

[johngenx]

I recently learned that in "we hate taxes US" many states have a an annual tax on the value of your assets.  Suppose you have two cars - a fancy Mercedes S500 that has a value of $50K and an Accord with a value of $20K.  You pay a percentage of the $70K EVERY YEAR.

mmret?  Wealth taxes!  I admit I did not know they taxed people via this method there.  Some of my US friends brag about their low income taxes, but then have a plethora of other fees and taxes they face.  Huh.  Services cost money to provide?  Who knew?

[OliverD]

Yes, in some states you pay "property tax" on your cars.

Similarly, some states have no sales and/or income tax – but that just means they ratchet up property taxes to insane levels to compensate.

[ArticSteve]

I recently learned that in "we hate taxes US" many states have a an annual tax on the value of your assets.  Suppose you have two cars - a fancy Mercedes S500 that has a value of $50K and an Accord with a value of $20K.  You pay a percentage of the $70K EVERY YEAR.

mmret?  Wealth taxes!  I admit I did not know they taxed people via this method there.  Some of my US friends brag about their low income taxes, but then have a plethora of other fees and taxes they face.  Huh.  Services cost money to provide?  Who knew?

They pay a very fast depreciating "asset" tax.  $40K USD Avalon Limited in KY costs $500 first year for "title registration".  In Ontario that 40K USD Avalon Limited would cost north of $6000. CAD upfront and then taxed at 13% every time that same car changes hands for it's life. 

In KY ppl pay screw all in taxes.  At least 50% LESS than in Ontario.  The only thing expensive down there is Private Health Care.

[johngenx]

The only thing expensive down there is Private Health Care.

Which is essentially a horrendous often-regressive tax - overall health care costs in the US are far greater than here.

[ArticSteve]

No question.  In the US it all depends on where on the income ladder one is. 

In Ontario, if you have an existing manufacturing business or planning on one, NY State is the place you want to be.  Ontario is a union/civil service/extreme regulation sh*t sandwich.  Beyond recovery.