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If you do not state a dollar value the DMV will impose one off the blue book. So money ahead you will want to agree to a fair value to state.
This is a state-by-state issue, so the OP needs to check on their local situation to know if stating a value per vehicle is desirable.
In the Western states where I live, the sales tax that results from a car purchase is only based upon the money that trades hands and the trade in vehicle portion of the price is not subject to sales tax. If there's no money that changed hands to complete the transaction, the trade is sales tax free on both sides of the deal. So, if you trade a $10,000 vehicle in on a $10,000 purchase, there's no sales tax due.
At the same time, the ownership/registration fees are based upon the book values that the state/counties use. Doesn't matter what you paid for the vehicle, it gets taxed the same as every other one like it no matter what the condition.
Wondering if any has ever done this before. I am selling my truck and also need work done on my house. Example, selling my truck for $3000 and need $600 worth of work done on house. What forms do I prepare for the sale of truck for $2400 and the same bill of sale for $600 worth of work.
These are two separate transactions.... I wouldn't want to comingle them in the event that you have issues with the contractor later down the road where you would muddy the water in court if you ever had to go. You might want to check your state laws.
If it were me, I would write up a contract for the work that lists out specific performance that the person you are contracting with is to do and then list the agreed upon amount of $600. I would then make the note that the contractor has agreed that in lieu of a cash payment, you will apply the $600 cash as a reduction to the sale price of the truck, bringing the price down from $3,000 to $2,400.
Both of you get it signed with a notary.
Then, I would write a bill of sale for the remaining $2,400 for the truck.
Long ago, I was told that in order to be a legal transaction money had to change hands.
So, in a barter situation, the Bill Of Sale had to state "For $1 and value received..."
I don't know if that was true then, and I don't know if it is true now.
Well, in this instance it is providing a service in return for something with a monetary value... Work for a truck. Since the truck has a monetary value I think this would be enough. But again..... it could vary from state to state so the best thing to do is check your local laws.
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