paying taxes on sale of used pop up

[tinacap]

HellO:

We live in California and are about to sell our used pop up to an individual. It has been a long time since I have sold a vehicle, is selling a pop up like selling a used car? Does the buyer or seller have to pay tax on the sale? Who gets the tax money? Thank you in advance for any help you might be.

I know that I sign over the title. Do I need a bill of sale?

[slickrock_steve]

Wavesprite is correct.
I "Kalifornia", the plates are permanent, and the DMV is who colects taxes. You do NOT have to mention the sale on your income tax either. You DO HAVE the title, and registration don't you?
The Title will have a place on it to transfer your interest in the unit, and usually a separate piece of paper for liability clearance.

[Wavesprite]

mobeewan wrote:
you will probably need to turn in your plates to the DMV any way.

Not in California. No matter what you do, make sure you fill out and mail that little section of your title that releases your liability. That way, if they don't go register it, you've passed on the information and sale date to the DMV.

[mobeewan]

you will probably need to turn in your plates to the DMV any way.

[lfloom]

They will pay it when they register the vehicle. Only dealers collect the sales tax. BTW, I think it is smart to let the DMV know you sold the vehicle, just in case your buyer gets lazy.

[Sloop_Smitten]

Tyler is correct. In California taxes and license fees are collected when the vehicle is registered with the DMV. The title contains all the information and signatures required by the DMV if handled properly. A bill of sale is not required by the DMV as the signed off title replaces it. The seller may request a bill of sale for their records and they can be downloaded from the DMV site. Just make sure the information you enter on the title matches the information on the bill of sale.

[Tyler0215]

The DMV will collect any sales tax when the new owner licences the unit. You don't have anything to report on your taxes. You already paid sales tax when you bought it.

[ghaindle]

In some States the DMV will collect the taxes in others the buy must go to the local office or the Department of Revenue and bring the receipt to the DMV. I don't do income taxes but I would guess that if the buyer doesn't give you a 1099 then you won't need to worry about paying taxes on the sale.

[tinacap]

ghaindle wrote:
I have been doing sales and use taxes for 30 years. In some States it is considered a casual sale and not subject to sales taxes. When the buyer goes to the DMV to get the license plate they will get the answer. If it's subject to sales taxes the DMV will require proof of payment before they issue a plate or transfer of title.

Does this mean that the DMV will collect the sales tax from the purchaser OR is the sales tax supposed to be part of what I collect as the seller?

Do I have to report that I sold this on my taxes?

Thank you for your help.

[ghaindle]

I have been doing sales and use taxes for 30 years. In some States it is considered a casual sale and not subject to sales taxes. When the buyer goes to the DMV to get the license plate they will get the answer. If it's subject to sales taxes the DMV will require proof of payment before they issue a plate or transfer of title.

[RimCountry]

This article should help to answer most of your questions:


Buying or Selling a Vehicle Changing Vehicle Ownership (CA)