Market Value
 

So I'm finally going to get a chance to get to the DMV and register this thing in my name and according to the websites I've looked at, the California DMV could tax "gifted" motorcycles based on fair market value unless it was gifted by a family member.

I've looked around online and 01-06 in decent condition with less than 16k miles are generally around the 3500-4k range.

Mine has 43k miles, both lower fairings are busted, scratches on the starter cover, rear fairing has a crack in it, left bar end is scratched, so I'd say it's pretty POOR condition. I'm thinking fair market value would be under 1k at this point but it's hard to make a comparison.

So I'm open for ideas. I haven't filled out my part of the paperwork yet so I can put a dollar amount I "paid" for it, or I can put gifted since I got it for free.

I'd buy that bike all day at 1k! That being said, I have no qualms in telling the tax man it is worth $500 ;)

Based on the way you present it, I'm guessing it wasn't a gift from a family member. So the "family gift" option really isn't an option.

If you still want to go the "gift" route, The DMV may require (most likely) documentation from the previous owner stating its "gifted". This could be accomplished via signed affidavit or standard bill of sale. Instead of filling in a price, you'd write "gift". Of course, if they wrote "gift" on the title, that would help as well. Its possible that you could get away w/ just the title but don't count on it.

At DMV, present the BOS & Title, & tell them its was a gift. They'll most likely ask WHY? You'll explain the poor condition of the bike like you did above (ie. make it sound as worthless as possible). IF there's a problem, ask for a supervisor to come outside & see it to verify condition.

At best, you'll pay very little. At worst, you'll have to pay a reduced book value based on its poor condition. Its really going to depend on the DMV rep you get. :\

In Forrest Gump speak, DMV's are like boxes of chocolates...you never know what you're gonna get.

I'll be interested to see how this turns out!

If you put your purchase amount suspiciously low they will look up the kbb value anyways and use that. Out here they always look it up and base your taxes off of whichever number is higher. Kinda sucks.

In Illinois tax is next to nothing. I was incredibly surprised when I was only charged $25.00 when I paid $3000 for my 2002 f4i.

Actually I still wonder about that sometimes..:icon_confused:

Here in PA, the seller tells the DMV rep what the amount the vehicle was sold for...then you are charged 6% state sales tax on that amount plus any transfer fees and plating fees.

Yeah, unfortunately I can't put it as a family gift, even though we've been best friends for close to 20 years I don't think that will count.

I don't have a BOS, but I can get one easily enough from him. He lost his title so I've got notarized paperwork for the title replacement + transfer to me. I haven't filled in my portion of the paperwork yet, which is where you either declare it a gift or the amount you paid.

I'm already going to have to pay fees based on the fact I'm turning in the paperwork later than the required 10 days and his registration was already expired so I'll have to pay a late fee on that too, but I really can't complain for a free bike.