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Need help: how to transfer vehicle title to child living out of state
Tl;Dr: how do I transfer title, issued in California, for a vehicle I own, to my daughter who has become a Colorado resident and avoid her paying use taxes?
I am a California resident. My daughter recently moved to Colorado and became a resident there. I want to transfer the title for the vehicle she took along into her name because my insurance will not let me keep a vehicle driven on a regular basis by a resident of another state, who is not a member of my household, on my policy. After moving my daughter doesn't qualify as a household member any longer. I know that in California it is possible to transfer vehicle title to a child and avoid paying the use tax. If my daughter has title to the vehicle she can get her own insurance in Colorado. I checked the Colorado DMV website and there is no clear explanation to deal with an out-of-state title when the person intending to register the vehicle in Colorado is not on the title. Can I accomplish both changes in one go? I.e. California vehicle title in my name --> Colorado vehicle title in my daughter's name? Or do I need to do it in 2 steps: (1) California vehicle title in my name --> California vehicle title in my daughter's name and (2) California vehicle title in my daughter's name --> Colorado vehicle title in my daughter's name? I want to avoid paying any taxes on the value of the vehicle since this is a intra-family transfer. I will be in Colorado in a few weeks, so signing the title over in person at a Colorado DMV office won't be a problem. |
"sell" her the car for such a low price that the taxes would be meaningless? Is this possible?
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Depending on value, I think you can gift her the car and just transfer the title. I could be wrong. You can gift up to 20K per child IIRC.
From the Colorado DMV Yes, you can still gift your child or other direct relation your old car in Colorado without paying additional sales tax. https://www.etags.com/blog/title-transfer/colorado/#:~:text=Yes%2C%20you%20can%20still%20gift,write%2 0down%2C%20%E2%80%9Cgift%E2%80%9D. |
I do know that in CA there's no tax if gift to your kid or anyone else for that matter.
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Put her name on the CA title, send it to her and she can do the paperwork in CO. Title as your name OR hers. Helps if your surname and hers are the same. IF CA needs it to be AND, sign the release on the back of the title and give her a letter notarized showing it a gift.
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Might have to write a receipt. |
Joe Bob has it. Check to see if you need to sign the Cali title before you send it off, some states require a signature, others don't. It's up to the state that the title comes FROM whether the title requires a signature (or sig and notary in some).
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