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Car Donation Berkeley CA
Donation or sale of a second-hand vehicle What is better?
When we consider giving a second-hand car, the first doubts arise when calculating the amount of the tax to be applied; in this case, the Donations. A tribute that, depending on who is benefited by our altruistic gift, can be very expensive and sometimes “obliges” the parties to rethink the operation and assess the possibility of a sale. If you are involved in one of these operations, see if it is more convenient for you to donate or buy the used vehicle.
When dealing with this question, you should know that the paperwork of one and another operation is practically the same. It will be necessary to sign the corresponding contractor Public Deed between the parties, go to the Traffic Department of the province to change the ownership of the vehicle and make sure that the change has been made correctly. For the latter, it is important to request an Enrollment Report from the DGT, where the current owner of the vehicle and the date of the last transmission appear.
So, what is the difference between donation or purchase of a second-hand vehicle? Undoubtedly, the amount of the tax to be paid to the Treasury. To answer the question we must analyze each specific case, taking into account the autonomy where we are, the fiscal value of the vehicle, the price actually paid for it -in the case of purchase- and the relationship of the generous donor. and the lucky donation.
In case of no relationship of kinship, for a vehicle of high value, the tax will always be lower in a sale than in a donation. On the contrary, if a father wants to donate a second-hand vehicle to his son in Madrid, he will hardly have to pay Donation Tax.
What is clear is that, in one way or another, the final result must be the correct change of ownership of the vehicle, which you can check once all the operations have been carried out by means of an Enrollment Report of the DGT or a Note Simple Registry of Personal Property. In Direct Registration, we can help you with both options.
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