Could reporting less than the sale of the vehicle get me into trouble?

It's not legit, are you crazy? People do it, but it's definitely not legit.

If you have AAA, do it there

 

Cheating the state out of its sales tax is stupid. If you get caught its jail time.
people who are greedy get caught and paying 5000 and claiming 500 is pretty greedy.
That and the fact you actually go in a car forum and ask about it tells me your not to bright either.
So really greedy and dumb is a bad combo.

 

in mass, they go by the blue book, don't care what you paid for it. i guess they realized people were lowballing them.

 

I also don't agree with the California use tax whenever there is a car transfer. I think a car should only be taxed once, when new

 

we also pay an inheritance tax on money already taxed, but not to the same person.

 

This I believe has to exceed 5 million

 

It is illegal and if you are caught you will pay a fine. If it is worth risk, go ahead and do it.

Don't try to justify saying California has plenty of money. We don't know if they do or not. If you disagree with the law vote politicians in that are against higher registration fees.

People are allowed to gift cars and write down a small number so this is not a loophole. The taxes are collected when you report that gift as income. Doubtful many people report it.

My $0.02? Risk to reward is not worth it. Registration fees are a few $100. Penalty fees are a lot higher. Not worth it. Illegal front window tints. My fix-it ticket was $25. That was a lost gamble but the risk is no biggie.

 

Only on estates larger than $5.5 million for an individual... $11 million for a couple.

No, I'm not an accountant... but I did stay at a Holiday Inn last night.

 

I've done with my motorcycle, my used 63 Impala, my Gen3 and gen2. The gen2, we did it In front of the DMV officer. Everyone effing does it.
Go ahead and do it.


Posted via the PriusChat mobile app.

 

Lol! Hahaha.

Posted via the PriusChat mobile app.

 

When I sold my 2006 Scion XB, I used the money as a down payment on my 2015 Prius. I put in the actual amount sold, and used the fees charged to me as a write off. (I use my car for business). I quit low balling the amount sold decades ago. I like the peace of mind.

 

Oh, and by the way, all you need is one Franchise Tax Board or IRS audit in your life, and I think you will find the few 100 dollars you pay now no big deal.

 

The line above where you sign the documentation in California reads "I certify (or declare) under penalty of perjury under the laws of the State of California that the foregoing is true and correct."

The penalty for perjury if you get caught in your little scheme is up to four years in state prison and a criminal conviction you get to drag around for the rest of your life. You decide if the amount of money you save is worth the risk.

 

My understanding of California DMV practice is that if they don't think the valuation is reasonable, then they use their own. So claiming a $5000 sale as $500 isn't going to fly. They see thousands of transactions, and probably maintain a list of "reasonable" values. Now if you want to just shave the transaction (report the $5000 as $4000?), then that might get past their screening. Still illegal, but your call if you think the value is worth the risk of being identified as a problem case.