Trading Cars

[Ultraman]

Hi all,

Do you know if I need to pay tax if I trade my car with another person's car of equal value? If we both have the title on hand and we decided to trade our cars do we need to pay tax?

Thanks in advance.

 

[BJV]

I don't know about Cali but in Louisiana if there is a difference in the blue book values of the cars whoever ends up with the most expensive car has to pay sales tax on the difference

 

[mickeylex]

I don't know the answer but this link might help:
http://www.dmv.ca.gov/vr/topbuysell.htm

 

[93Cherrybomb]

I can't speak for CA, but in TN we have something called a "wheel tax". In this situation, if you "gifted" the cars to each other, you woul still end up paying this stupid tax. It's about $100. I'm sure California is going to be different though.