Q. I am giving my granddaughter my 20 year old car. She will be a high school student in September and the car will only get her through this year before leaving for college in September 2020. Title transfer requires a sales amount on which New Jersey sales tax would apply. Since it is zero, what amount would be assessed?
– Grand parent
A. We hope your granddaughter is grateful for her new wheels.
Because you are offer the vehicle, There’s no sales tax due on the transaction.
To claim your exemption, on the back of the title where it asks for the purchase price, you must write “gift,” said Gail Rosen, a Martinsville-based chartered accountant.
“In addition to that, you follow all the normal steps when transferring a car, which includes completing the back of the title and including all relevant information,” she said. “Be sure to remove your license plate and return it to Motor Vehicles.”
You can read more about these steps here from the Motor Vehicle Commission.
Send your questions to [email protected].
Karin Price Mueller writes the Bamboos column for NJ Advance Media and is the founder of NJMoneyHelp.com. Follow NJMoneyHelp on Twitter @NJMoneyHelp. Find NJMoneyHelp on Facebook. Register for NJMoneyHelp.comit is weekly e-newsletter.
