Cheapest way to register vehicle in CO?

[sellersm]

Long story short: our 2002 Odyssey minivan is finally dead, tranny's toast, bunch of other high $$ items need fixing, not worth the $$ to put into it (again, it's had 3 trannys already)...

Wife's sister is willing to 'sign the title of their Ford Escape over to us' so we can 'have' it for an indefinite amount of time until we can find a suitable replacement vehicle.

QUESTION: what's the cheapest/best way to register it? Say it's a gift? Have a bill of sale showing we paid $10 for it, or less? ???????????????????????

[Grant H.]

Bill of sale stating purchase price of $1.

When it's time to give it back to her, same thing.

[SouthPaw]

In my experience, I would avoid writing trade/gift on the purchase amount. This worked a few times in the past but more recently, they have asked what the value of the trade was and/or write that in the purchase amount. I never tried the gift method but they may tax you for the entire amount on the Escape. If the plates on the van were registered to your or your wife's name, you can reuse them for a little bit of credit. I recently had to jump through some hoops on a motorcycle title that was from MO and had to talk to the DMV many times on the phone. Oddly enough, they were pretty helpful with answering my questions. It may warrant a call to them and ask them what you 'should' do but I wouldn't use the term "cheapest way" for obvious reasons.

As always, you should always be truthful in these types of scenarios because Uncle Sam deserves his cut out of everything, even if it is something that cost you nothing..

[newracer]

I would state it was a gift. There no taxes on a gift. I have done this many times, even across states with no problems.

[68Charger]

One of the hidden costs of Colorado residency.

I just registered a trailer I bought without a title... went into the DMV with only a $10 bill and my checkbook... I didn't write a check, and I still had a quarter in my pocket when I left.

ok, It was a farm plate... but I'll take it!

When I last did a xfer in Colorado, I did one as a gift... it worked then, but YMMV with greedy Dem taxoholics in charge.

[Little Dutch]

The DMV doesn't even look at the sale amount anymore. The computer tells them the taxable amount of the vehicle based on Make, Model, and year of manufacture.

[68Charger]

The DMV doesn't even look at the sale amount anymore. The computer tells them the taxable amount of the vehicle based on Make, Model, and year of manufacture.

While I believe this is true for the property tax portion, they most certainly look at the sale amount for sales tax. If you bought private party and sales tax was not charged, the DMV will charge it.
This is the case in many states now... I didn't owe it on my trailer only because of an Ag tax exemption I have.

[Grant H.]

I would state it was a gift. There no taxes on a gift. I have done this many times, even across states with no problems.

Depends on value of the vehicle.

Gift taxes can apply to gifts of cars as well.

[SouthPaw]

Depends on value of the vehicle.

Gift taxes can apply to gifts of cars as well.

That's what I thought, no way in hell you are getting out of anything and not paying taxes.

[ray1970]

Depends on value of the vehicle.

Gift taxes can apply to gifts of cars as well.

I seem to remember there was some sort of $50 ?gift tax? or something when I was dealing with vehicles for the kids years ago. I ended up doing the $1 sale so we didn?t get dinged with the gift tax.