Need some help with a title transfer

[98V6 K.I.T.T.]

Hey guys, well this past summer my neighbor ended up moving to Montana and I was so lucky to score some things they didn't need or couldn't take with them. One of them being a 1988 Ford Ranger that they gave me for free (it runs and is in pretty amazing shape for the price). Well I had some difficulties getting the title from the owner because they couldn't find it, and had to move during the process. Well, I finally got the title in the mail and have to go down to the DOL to make the transfer. I've never transfered a car before, but I know that they will tax you. If I declare it as a gift (which it truly was) will I still get taxed? Or do I claim that I paid $1 therefore that tax will pretty much be nothing. Any other tips or info would help. I've looked at the website, but wanted to know any real experience.

On a slightly different note I'm really excited for this truck, I'm planning to totally rebuild it with some minor customization and conversion into a street truck with a 302. I've been wanting to rebuild something myself for the fun and experience on something that I wont be upset if I screw up in the process on something I didn't invest much money on intially, plus not having any deadlines for this. Once the title is transfered the tear down begins.

 

[f4fntm]

No tax if it's a gift, but you'll have to provide a statement from the previous owner to the effect that it was a gift.

 

[ASD]

Generally the gift tax rules allow you to make a gift of $11,000 per year to any individual without gift tax consequences. The gift may be made in cash or property, but the value of property counts toward the $11,000 limit.

There are no income tax consequences to the recipient of the gift. The donor pays no tax for each gift under $11,000 a year, and does not receive any income tax deduction for the amount of the gift given (unless made to a qualified charity).

 

[98V6 K.I.T.T.]

Thanks for the help, anything else is appreciated.

 

[wythors]

Back in the mid-90's when my dad died, my mom gifted me a car that he wanted me to have. It did require a statement from her that it was a gift and I had to pay about $25 if I remember correctly for transferring the title.

 

[grover]

If you do not have a statment from the previous owner they can make you pay tax on the book value of the vehicle. On an 88 Ranger the value has to be no more the $1500 but you may be better off saying that it is a non running parts vehicle. If you wait to long from the time of sale they can also make you pay a penalty for that. I believe you have 30 days to complete the transfer of the vehicle.

 

[WANNA_BE_GT]

+1 on the gift as part of the bill of sale. Congrats on the new toy man! Let me know if you ever want any help, I've turned a few wrenches in my time.

 

[98V6 K.I.T.T.]

+1 on the gift as part of the bill of sale. Congrats on the new toy man! Let me know if you ever want any help, I've turned a few wrenches in my time.

Looks like I'm going to need to get a statement or I could be paying more than I want.

Thanks Corey, I'll probably need some help for sure on this project. I'm going to basically work on the body and interior first getting it looking to my liking and then pulling the engine. I'm not going to complain on the little 4cyl in it right now with gas prices.

here are some pics for those who care

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[WANNA_BE_GT]

You should look into building a 2.3 turbo for it. It would be a much easier swap. It looks very clean, can't go wrong for free

 

[Saleen09]

I've built 3 "Strangers" with small blacks, not that hard at all.

The turbo 2.3 is a cool route as well, but nothing like a V8 in those little trucks.

To keep things simple and on the budget side of things, do a carb, AOD, and an explorer rear end.

 

[98V6 K.I.T.T.]

You should look into building a 2.3 turbo for it. It would be a much easier swap. It looks very clean, can't go wrong for free

That might be a good idea. I just know that the 5.0 swap is fairly simple as far as putting one in. My man goal is finding a setup that will make good power, affordable and basically will not need any big custom/fabrication to make it work. I want around the 300hp to the flywheel but would settle if it were maybe around 250, because I would put it on the bottle if it would do track time. Who knows, maybe even a 3.8, 4.0l V6 with some goodies. I don't know, my first thoughts are a carb'd 302, but I'm going to start with making the truck look better to the point where I feel it would deserve a nicer engine. I have to realize that this truck is not worth alot, and any big mods probably wont help the value of this truck.