NJSBA Family Law Section

 View Only
Cosmo Lex
Back to discussions
Expand all | Collapse all

Any sales tax to be paid on transfer of car?

  • 1.  Any sales tax to be paid on transfer of car?

    Posted 10-08-2014 05:15 PM
    Hi:
    In lieu of alimony claim, wife agrees she will accept title to vehicle she drives that is presently in husband's name, provided husband also pays off the outstanding loan on the car. Husband also will waive his E. D. claim to wife's small retirement accounts in further consideration for the alimony waiver by wife.

    Does husband have to pay NJ sales tax as a result of this transaction regarding the car that is part of a comprehensive marital settlement incident to a divorce?

    -------------------------------------------
    Robert Goldstein Esq.
    Manalapan NJ
    (732)972-1600
    -------------------------------------------


  • 2.  RE: Any sales tax to be paid on transfer of car?

    Posted 10-08-2014 05:44 PM

    Bob,

     

    Maybe I am missing something.  If the transfer of title shows consideration of $1, there should be no problem.

     

    Hanan

     


    Hanan M. Isaacs, Esq.

    hanan.gif

    Hanan M. Isaacs, P.C.
    4499 Route 27, Kingston, NJ
    t 609.683.7400
    f 609.921.8982
    vCard: Download here >>
    [email protected]
    www.hananisaacs.com

    Compassionate counsel; tough advocacy.

     

    Family Law

    Post New Message Online   Post New Message via Email

     

    Any sales tax to be paid on transfer of car?

    Oct 8, 2014 5:15 PM

    Robert Goldstein

    Hi:
    In lieu of alimony claim, wife agrees she will accept title to vehicle she drives that is presently in husband's name, provided husband also pays off the outstanding loan on the car. Husband also will waive his E. D. claim to wife's small retirement accounts in further consideration for the alimony waiver by wife.

    Does husband have to pay NJ sales tax as a result of this transaction regarding the car that is part of a comprehensive marital settlement incident to a divorce?

    -------------------------------------------
    Robert Goldstein Esq.
    Manalapan NJ
    (732)972-1600
    -------------------------------------------

    Reply to Sender   View Thread   Recommend   Forward

     

     

     

    You are subscribed to "Family Law" as [email protected]. To change your subscriptions, go to My Subscriptions. To unsubscribe from this community discussion, go to Unsubscribe.





    Original Message


  • 3.  RE: Any sales tax to be paid on transfer of car?

    Posted 10-08-2014 07:03 PM
    but would that constitute tax fraud if, in fact, there is value to the vehicle being transferred, i.e., consideration? 


    Sent from my Verizon Wireless 4G LTE smartphone



    Original Message


  • 4.  RE: Any sales tax to be paid on transfer of car?

    Posted 10-08-2014 07:10 PM
    The client asked me this and I believe the concern is that not only is he receiving consideration for the transfer of title to the asset but he is paying off a significant loan balance on the vehicle, thereby increasing the equity in the asset. I am wondering how the State sales tax division will deal with this. ------------------------------------------ Robert Goldstein Esq. Manalapan NJ (732)972-1600 -------------------------------------------
    Original Message


  • 5.  RE: Any sales tax to be paid on transfer of car?

    Posted 10-08-2014 07:59 PM
    DMV may consider loan payoff as consideration for dales tax purposes.  Should be considered is calculations. 


    Alice M. Plastoris, Esq.
    Office 973-538-7070
    82 Speedwell Avenue
    Morristown, NJ 07960

    Sent via the Samsung GALAXY S® 5, an AT&T 4G LTE smartphone



    Original Message


  • 6.  RE: Any sales tax to be paid on transfer of car?

    Posted 10-08-2014 07:16 PM

    So, when parties create deals in equitable distribution, don't we always say there is no intra-transfer tax?

     

    Don't we have spouses transfer real estate for $1, incident to the divorce, even if the property is worth a million dollars or more?

     

    I think we are over-rotating on this, but, like I said, maybe I'm missing something.

     

    Hanan

     


    Hanan M. Isaacs, Esq.

    hanan.gif

    Hanan M. Isaacs, P.C.
    4499 Route 27, Kingston, NJ
    t 609.683.7400
    f 609.921.8982
    vCard: Download here >>
    [email protected]
    www.hananisaacs.com

    Compassionate counsel; tough advocacy.

     

    Family Law

    Post New Message Online   Post New Message via Email

     

    RE: Any sales tax to be paid on transfer of car?

    Oct 8, 2014 7:03 PM

    Gary Borger

    but would that constitute tax fraud if, in fact, there is value to the vehicle being transferred, i.e., consideration? 

     

     

    Sent from my Verizon Wireless 4G LTE smartphone

    Reply to Sender   View Thread   Recommend   Forward


    Original Message

     

     

    Bob,

     

    Maybe I am missing something.  If the transfer of title shows consideration of $1, there should be no problem.

     

    Hanan

     

     

    Hanan M. Isaacs, Esq.

    Hanan M. Isaacs, P.C.
    4499 Route 27, Kingston, NJ
    t 609.683.7400
    f 609.921.8982
    vCard: Download     here >>
    [email protected]
    www.hananisaacs.com

    Compassionate counsel; tough advocacy.

     

    Family Law

    Post New Message Online   Post New Message via Email

     

    Any sales tax to be paid on transfer of car?

    Oct 8, 2014 5:15 PM

    Robert Goldstein

    Hi:
    In lieu of alimony claim, wife agrees she will accept title to vehicle she drives that is presently in husband's name, provided husband also pays off the outstanding loan on the car. Husband also will waive his E. D. claim to wife's small retirement accounts in further consideration for the alimony waiver by wife.

    Does husband have to pay NJ sales tax as a result of this transaction regarding the car that is part of a comprehensive marital settlement incident to a divorce?

    -------------------------------------------
    Robert Goldstein Esq.
    Manalapan NJ
    (732)972-1600
    -------------------------------------------

    Reply to Sender   View Thread   Recommend   Forward

     

     

     

    You are subscribed to "Family Law" as [email protected]. To change your subscriptions, go to My Subscriptions. To unsubscribe from this community discussion, go to Unsubscribe.

     

     

     

    You are subscribed to "Family Law" as [email protected]. To change your subscriptions, go to My Subscriptions. To unsubscribe from this community discussion, go to Unsubscribe.






  • 7.  RE: Any sales tax to be paid on transfer of car?

    Posted 10-08-2014 08:01 PM
    Real estate and accounts ate different.  DMV is a bear.


    Alice M. Plastoris, Esq.
    Office 973-538-7070
    82 Speedwell Avenue
    Morristown, NJ 07960

    Sent via the Samsung GALAXY S® 5, an AT&T 4G LTE smartphone



    Original Message


  • 8.  RE: Any sales tax to be paid on transfer of car?

    Posted 10-08-2014 08:26 PM
    First,  Internal Revenue Code section 1041 treats a transfer of an asset as a gift and no longer a sale so there is no longer income tax on transfers of appreciated asset between spouses or former spouses pursuant to a divorce as had been the case under Commissioner v. Davis.

    Second, there is the issue raised of state sales tax on the value of a vehicle being transferred. 

    Kastly, the New Jersey Realty Transfer Fee (a tax)  would be imposed on a transfer of real estate between spouses but for the statutory exemption of transfers within 90 days of a divorce.


    Sent from my Verizon Wireless 4G LTE smartphone



    Original Message


  • 9.  RE: Any sales tax to be paid on transfer of car?

    Posted 10-08-2014 09:19 PM
    It's exempt from income tax under the IRS code and regs, but we are talking sales tax. ------------------------------------------- Robert Goldstein Esq. Manalapan NJ (732)972-1600 -------------------------------------------
    Original Message


  • 10.  RE: Any sales tax to be paid on transfer of car?

    Posted 10-08-2014 09:20 PM



    Sent from my Verizon Wireless 4G LTE smartphone



    Original Message


  • 11.  RE: Any sales tax to be paid on transfer of car?

    Posted 10-09-2014 10:18 AM



    Original Message


  • 12.  RE: Any sales tax to be paid on transfer of car?

    Posted 10-09-2014 10:50 AM
    How is the transaction a "gift"?

    -------------------------------------------
    Robert Goldstein Esq.
    Manalapan NJ
    (732)972-1600
    -------------------------------------------


    Original Message


  • 13.  RE: Any sales tax to be paid on transfer of car?

    Posted 10-09-2014 11:32 AM

    That's my concern when there truly is consideration for the transfer.

     

    Gary L. Borger, Esquire

    BM logo

     

    1415 Marlton Pike (Route 70) East, Suite 305
    Cherry Hill, NJ 08034-2210
    Phone:  (856) 424-3444

    Cell:      (856) 308-6158
    Fax:      (856) 424-3690
    E-mail:      [email protected]

    Website: www.njfamilylaw.net

     

     P Consider the environment before printing this e-mail.

     

     

     




    Original Message