So nice of you! ^^^^^^
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Transferring a registration in a trade?
- Thread starter Motorcycle Mike
- Start date
So nice of you! ^^^^^^
Sent from a Samsung Galaxy far, far away using Tapatalk
Please do.
But yes, getting a straight answer is a challenge. Perhaps ask for clarification from a manager vs the regular employee at the wicket, hopefully the manager can be clear and concise instead of just guessing, which based on my experiences over the years (particularly with one situation with an imported vehicle several years ago) they often do.
op i did a three way trade 2 years ago. i traded my atv, (no book value), for a ford ranger, then flipped the ford ranger for an f150. The only person who paid tax was the guy whop got the ranger the F150 didn't have a book value due to age. So we, (the Atv guy and I), got "nice" and put down $1 value for service Ontario and paid $0.13 tax
Motorcycle Mike
Well-known member
So do you call it a gift or do you tell them it's an even trade.
I prefer to lie as little as possible, and in this case very little or no money would be trading hands, but I'm wondering if they expect you to declare a value if you announce that it was a trade.
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I prefer to lie as little as possible, and in this case very little or no money would be trading hands, but I'm wondering if they expect you to declare a value if you announce that it was a trade.
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Advised it was a trade, the vehicles were considered, (by us trading), to be of equal value. No money exchanged hands. So as I said, service ontario treated it as a "normal" transaction, IE I gave him $1 for his truck then he gave me $1 for the ATV. I then paid the $0.13 tax and whatever the cost of the new plates for the truck were. Clerk didn't bat an eye. So without having to lie, if you find a bike close in value you say you sold your bike to the new owner for $1 and he in turn sold you his bike to you for $1 tax will be 13 cents, for each transaction.
If memory serves me correctly a "gift" can only be to a family member and you MUST have a declaration filled out, supporting the gift, and then no tax is payable. I may be doing this in the spring with my mothers vehicle which I will be getting from her, and the value of the vehice will be about $24,000, otherwise I will have to pay the $3,120 tax due. You can also only transfer ONE vehicle per year.
Correct. But keep in mind that with a car transfer you'll pay tax on the purchase price or the wholesale price listed on the UVIP whichever is higher. Without that declaration you'd be paying tax on the wholesale price even though it was a gift.
With bikes that declaration is not required since there is no wholesale price listed. You'll pay tax on the actual amount paid. If it was $1 then you pay tax on $1. If it was a gift like the FZ1 I adopted this year there would be no tax paid.
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He is not I bet you
Tripletrouble
Well-known member
Many years ago I when we lived in a different world I traded a rifle for a motorcycle. At the MTO office they said that as no money changed hands there would be no tax. I think that principle is likely still in place
Car or bike, just look at what would occur at a dealership. Tax is calculated on the money that happens through the trade, not the vehicle per say. Done it before privately as well; declared 1$, and when I got my letter much later asking for confirmation of the transaction, I just added a footnote that I had traded with no money on the deal. Incidentally, I asked at the time of title transfer at the MTO, and they did confirm just to put 1$ if it was a straight trade, or whatever the cash difference was. Completely legal
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