I am buying a used car in Texas from a Private seller, can I say that I paid $1 at DMV to avoid taxes?

Question

Private seller

used car

Texas

DMV

Answer 1

It did not work for me they looked it up and charged me the taxes anyway. I bought mine from my moms estate would have been better off to tell them what I paid but my sister

just put a dollar on the line.

Answer 2

I would not recommend trying to defraud the Texas DMV.

Answer 3

No matter the amount you purchased the vecicle for you still have to pay taxes.  I have a vehicle registered in Texas.

Answer 4

don't be greedy.  Below a certain point the DMV will assess tax at what they decide is the value of the car.  Who would you rather have that power.  You should not record the sale at less than about two thirds book value.

Isn't the penalty for all crime in Texas death?

Answer 5

I did in fact pay one dollar for a used car, that was because the person was actually giving me the car as a gift, so they sold it to me for a dollar to avoid being charged taxes.  You can get into trouble with this issue, ask yourself is it worth it.

Answer 6

The tax man is not that stupid.  You will almost have to be guaranteeing that the car will never hit the road again.   The tax man wants his cut.  You know how government is, they don't like to be cheated.

Answer 7

just be honest and nobody goes to jail or gets fined for trying to beat the system.....

Answer 8

That would be too obvious.  Put down a realistic number (depending on year).  At least few hundred dollars.

Good Luck...

Answer 9

They will get suspicious and look up the value, potentially charging you more tax then you bought it for.

I bought my car for 7k but on the DMV paper work it said I bought it for 4.5k. They didn't blink.

Just be smart about it.