Automotive

Ontario vehicle ownership transfer between family

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  • Jul 5th, 2022 5:11 pm
[OP]
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Aug 12, 2008
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Newmarket

Ontario vehicle ownership transfer between family

I'm having a vehicle ownership transferred to me by a family member.

I have not done this in about 20 years so I'm a bit fuzzy on the process but I went to Service Ontario today with the completed ownership and it seems I have to fill a form and have it signed and witnessed by a town commissioner or notary. This is a bit difficult as the family member and I are both on different schedules so it's a real challenge to coordinate a time.

What is the difference between the family member transfer vs saying he sold me the vehicle for .01 cent? Why is this form even necessary and is there any way around it?
31 replies
Member
Aug 5, 2007
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how old is the car? i know in quebec if its 10 years old or older, there is no book value for it, therefore you could declare it as a $10 sale. and pay tax on $10.
[OP]
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fromage wrote: how old is the car? i know in quebec if its 10 years old or older, there is no book value for it, therefore you could declare it as a $10 sale. and pay tax on $10.
It's a 1993 ... I wonder if Ontario has similar
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Mar 10, 2004
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When my father-in-law gave me his 14 yr old Corolla - I had to get a declaration of gift signed by my local Town Councilor - there was no tax payable. (This was in Ontario). The Town Councilor did not charge for witnessing the transaction and signing the document.
[OP]
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plymouthhater wrote: When my father-in-law gave me his 14 yr old Corolla - I had to get a declaration of gift signed by my local Town Councilor - there was no tax payable. (This was in Ontario). The Town Councilor did not charge for witnessing the transaction and signing the document.
Yes, I think that's what I have to do but it's just seems like un-necessary red tape. I may end up just buying the $20 UVIP and declaring the sale for $10 or something like that. Last time I did a transfer between family, I declared the sale as .01 cent and it was totally straight-forward and no-hassle.
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Nov 16, 2008
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jimmy-j wrote: Yes, I think that's what I have to do but it's just seems like un-necessary red tape. I may end up just buying the $20 UVIP and declaring the sale for $10 or something like that. Last time I did a transfer between family, I declared the sale as .01 cent and it was totally straight-forward and no-hassle.
Go to the Service Ontario on Yonge St, they were great when I sold my Jeep. I think either way you have to buy the UVIP, but it's easy to fill out and the value may not even matter because a family transfer doesn't require them paying any taxes on it....I think just the simple ownership transfer which has to be done anyhow
[OP]
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redsfan wrote: Go to the Service Ontario on Yonge St, they were great when I sold my Jeep. I think either way you have to buy the UVIP, but it's easy to fill out and the value may not even matter because a family transfer doesn't require them paying any taxes on it....I think just the simple ownership transfer which has to be done anyhow
That's the one I just got back from and the lady there was pretty adamant that I needed this form and there was no way around it.

But I think you're right - the UVIP way is the easiest. Not as many hoops to jump through.
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Aug 29, 2011
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Mississauga
jimmy-j wrote: Yes, I think that's what I have to do but it's just seems like un-necessary red tape. I may end up just buying the $20 UVIP and declaring the sale for $10 or something like that. Last time I did a transfer between family, I declared the sale as .01 cent and it was totally straight-forward and no-hassle.
The only way around the sales tax is to submit the notarized declaration. Period. You could try to "sell" it for $10 but Service Ontario will just laugh at you and set the value according to whatever wholesale data they use and charge you HST accordingly.

A lot has changed in 20 years since you last did this.
[OP]
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mrweather wrote: The only way around the sales tax is to submit the notarized declaration. Period. You could try to "sell" it for $10 but Service Ontario will just laugh at you and set the value according to whatever wholesale data they use and charge you HST accordingly.

A lot has changed in 20 years since you last did this.
hmmm so you can't even give them money in the form of purchasing a UVIP? They force you to make it free. Wonder what their database shows for a 1993 Honda Accord .

I'm working out plans to see the town commisioner - I suppose there's no way around it.

Thanks all for your responses - the RFD community never fails me!
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Aug 29, 2011
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It's not the purchasing of the UVIP that's the problem, it's when the buyer goes and tries to register the vehicle using a bill of sale that says $10. That's when SO will laugh at them, reassess the purchase price and charge them HST.
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Jun 8, 2022
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Vaughan
jimmy-j wrote: I'm having a vehicle ownership transferred to me by a family member.

I have not done this in about 20 years so I'm a bit fuzzy on the process but I went to Service Ontario today with the completed ownership and it seems I have to fill a form and have it signed and witnessed by a town commissioner or notary. This is a bit difficult as the family member and I are both on different schedules so it's a real challenge to coordinate a time.

What is the difference between the family member transfer vs saying he sold me the vehicle for .01 cent? Why is this form even necessary and is there any way around it?
I recently transferred vehicle to my souse name. No taxes were paid or forms notarized. There is a special form on service Ontario website which allows to transfer vehicle or plates to family member, such father, mother, spouse and children. No other family members are included.
[OP]
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Alexaander wrote: I recently transferred vehicle to my souse name. No taxes were paid or forms notarized. There is a special form on service Ontario website which allows to transfer vehicle or plates to family member, such father, mother, spouse and children. No other family members are included.
The Service Ontario agent gave me the form to complete and said it must be witnessed and signed by either the town comissioner or notary. She said there's no alternative. Maybe between spouses, same household it's different. My father and I live at different addresses so maybe that complicated matters.
Deal Addict
Nov 16, 2011
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must have notarized document abou the gift of the vehicle. Then there is no tax. If you do not want to go to the bother of the notarized document., you are considered to have purchased the vehicle at book value ( regardless of the mickey mouse $10.00 receipt ) and you will pay tax on book value. You also have to buy a UVIP.

The " inconvenience " of getting the notarized document may say you lots of $$$$$.

There is a small price to save money.

Here is the link ..https://www.ontario.ca/page/transfer-ow ... ily-member
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Nov 27, 2005
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mrweather wrote: It's not the purchasing of the UVIP that's the problem, it's when the buyer goes and tries to register the vehicle using a bill of sale that says $10. That's when SO will laugh at them, reassess the purchase price and charge them HST.
What would they assess the appropriate purchase price to be for a 1993 car?
Jr. Member
Feb 28, 2021
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board123 wrote: What would they assess the appropriate purchase price to be for a 1993 car?
I don’t know how they do it but I bought a 1990 truck in 2020 and because there was no book value I had to spend more money to bring in an approved appraisal of the vehicle to then pay taxes on.
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Jun 8, 2022
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Vaughan
jimmy-j wrote: The Service Ontario agent gave me the form to complete and said it must be witnessed and signed by either the town comissioner or notary. She said there's no alternative. Maybe between spouses, same household it's different. My father and I live at different addresses so maybe that complicated matters.
This is very odd. Father considered to be family, where no tax involved. I went to Service Ontario on Yonge and Steeles and haven’t been asked a single question.
[OP]
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thebluegoat wrote: I don’t know how they do it but I bought a 1990 truck in 2020 and because there was no book value I had to spend more money to bring in an approved appraisal of the vehicle to then pay taxes on.
Okay I see now.. no way I'm going to pay to get an appraisal. I'm going the correct way - managed to get an appointment that fits the schedule tomorrow.

Car has been sitting in my garage for 2 weeks now and I've done maintenance complete top to bottom and the car is ready to go. All new bushings, ball joints, calipers, rotors, springs, shocks, engine gaskets, plugs, wires, fuel and air filters... etc etc.
[OP]
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Alexaander wrote: This is very odd. Father considered to be family, where no tax involved. I went to Service Ontario on Yonge and Steeles and haven’t been asked a single question.
How recent was this? When I see the town commissioner tomorrow I'm going to ask when this started. It really shouldn't be this complicated to transfer ownership of a vehicle between family.
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Aug 29, 2011
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Mississauga
board123 wrote: What would they assess the appropriate purchase price to be for a 1993 car?
VMR Canada has used car values going back to 1984. I looked up OP's car (1993 Honda Accord) and values range from $825 ("fair" DX 4-door) to $5175 ("excellent" EX 2-door coupe).

http://www.vmrcanada.com/canada_makes.html

MTO website also says any vehicle older than 20 years may require an appraisal.
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Jun 8, 2022
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Vaughan
jimmy-j wrote: How recent was this? When I see the town commissioner tomorrow I'm going to ask when this started. It really shouldn't be this complicated to transfer ownership of a vehicle between family.
End of march 2022.

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