Vehicle Ownership Transfer

[chaser]

My friend is leaving the country and transferring the vehicle ownership to her sister. She went to MTO and they wanted some fee (8% of tax of the vehicle market value?) for the process. MTO said they can only transfer the ownership to directly related family members (e.g. father to son, husband to wife) free of charge. I wasn\\\'t presented at the conversation, so I don\\\'t have all the details.

So, what we think now is to have my friend selling her car to her sister for $1. That way, she only has to pay 8 cents for the tax. Does this work? Or is there any better way to do it?

TIA

[bluntman]

It will work provided the Used Vehicle Information Package (UVIP) does not have a RedBook value of over $1000. Your friend\'s sister will pay PST on the wholesale RedBook value. If the value is less than $1000 then she will pay PST on the selling price. If it is over, then it\'s PST on the wholesale RedBook value.

A UVIP is required for any private sale that is not tax exempt. The cost is $20. Don\'t forget the insurance information, Safety Standards Certificate (SSC), the Drive Clean emission test and the ownership.

[JMAK74]

If transfer are free between direct family (I\'ve heard this before too), then:

Your friend transfers to his father, the father transfers to his daughter.

I guess so long as there is no waiting period and that transfers can go from child to parent, this may work - you\'d only have to pay the admin fee to get the transfers done.

JK

[chaser]

Originally posted by JMAK74

If transfer are free between direct family (I\'ve heard this before too), then:

Your friend transfers to his father, the father transfers to his daughter.

I guess so long as there is no waiting period and that transfers can go from child to parent, this may work - you\'d only have to pay the admin fee to get the transfers done.

JK

Sounds a good suggestion; however, their parents are not in Canada now and won\'t be back in the near future.

I guess they\'ve to pay the PST to the greedy gov\'t.

Thanks for the info guys.

[bluntman]

There is a waiting period, but in this case it shouldn\'t be a problem. The Minister of Finance will only allow a vehicle to be gifted (transferred tax free) once every 365 days. Transfer the vehicle to the parent and then a year later transfer it from the parent to the daughter.

However, since the parents are out of the country, the registration part becomes a little tricky. What we usually tell people is to notarize and complete what can be completed on the \"Sworn Statement for Family Gift Transfer of a Motor Vehicle in the Province of Ontario\" affadavit. Send it off (fax) to the parent in the other jurisdiction where they will have to have the fax copy signed and notarized by a Notary Public or lawyer over there. Next, fax it back here and come into the office with the half completed original and the completed fax copy.