Automotive

Transferring Car Ownership to Brother In Law

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  • Jul 13th, 2016 9:31 pm
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[OP]
Sr. Member
User avatar
Aug 29, 2005
643 posts
37 upvotes

Transferring Car Ownership to Brother In Law

Hi Guys,

I'm hoping to transfer ownership of my car to my Brother In Law but I want to avoid the sales tax by doing this under the MTO Family Gift of a Used Motor Vehicle. The problem is the car ownership is under my name and not my wife's. Under the rules defined as close family members, Brother in Law is not listed.

• spouse
• parent or step-parent
• grandparent or step-grandparent
• son or step-son
• daughter or step-daughter
• grandson or step-grandson
• granddaughter or step-granddaughter
• son-in-law
• daughter-in-law
• father-in-law
• mother-in-law
• sibling
• half siblings (siblings with a common parent)
• adopted siblings (siblings with a common parent through adoption)

But I was wondering if I could transfer it to my wife and then she can transfer it to her brother. Does anyone know if there is any issue in doing this? Would it raise any red flags or is this allowable? Any time period that my wife needs to hold the ownership before she transfers it to her brother? Is there a better way of doing this?

Thanks in advance for any advice.
11 replies
Deal Fanatic
User avatar
Jan 8, 2006
9608 posts
3023 upvotes
Vaughan, Ontario
I believe there is some wait time (about a year or so) once the first transfer is done.
Temp. Banned
Aug 7, 2011
6623 posts
991 upvotes
Vaughan
Pretty sure you can't gift it twice at $0 cost.

Only once.
Deal Guru
User avatar
Mar 31, 2008
11470 posts
2031 upvotes
Toronto
gottagetta wrote: Hi Guys,

I'm hoping to transfer ownership of my car to my Brother In Law but I want to avoid the sales tax by doing this under the MTO Family Gift of a Used Motor Vehicle. The problem is the car ownership is under my name and not my wife's. Under the rules defined as close family members, Brother in Law is not listed.

• spouse
• parent or step-parent
• grandparent or step-grandparent
• son or step-son
• daughter or step-daughter
• grandson or step-grandson
• granddaughter or step-granddaughter
• son-in-law
• daughter-in-law
• father-in-law
• mother-in-law
• sibling
• half siblings (siblings with a common parent)
• adopted siblings (siblings with a common parent through adoption)

But I was wondering if I could transfer it to my wife and then she can transfer it to her brother. Does anyone know if there is any issue in doing this? Would it raise any red flags or is this allowable? Any time period that my wife needs to hold the ownership before she transfers it to her brother? Is there a better way of doing this?

Thanks in advance for any advice.
There's a restriction on amount of times it can be done per year. Also, you would have to safety it. With the new safety certificate rules, it might be alot more head ache and expensive to fix then before. The cost to inspect is likely more as well. E-test would be required depending on when it was last done.
Deal Addict
User avatar
Nov 17, 2004
2666 posts
926 upvotes
Why do you need to gift it to your brother in law directly? Why not just gift it to your sister and have her keep it under her name? She can own the car and insure it and have your brother in law as the primary driver on it.
Deal Expert
User avatar
Jun 12, 2007
15696 posts
4740 upvotes
London
1) Add wife to your existing title
2) wife gifts brother
Deal Fanatic
Apr 11, 2006
8322 posts
2896 upvotes
Mississauga
CensoredByRFD wrote: Why do you need to gift it to your brother in law directly? Why not just gift it to your sister and have her keep it under her name? She can own the car and insure it and have your brother in law as the primary driver on it.
It's a brother-in-law because it's his wife's brother...not because it's his sister's husband. Unless of course, you think he married his sister. Lol. :lol:

OP, vehicle can only be transferred as a gift to family, once every 12 months.
Deal Addict
User avatar
Nov 17, 2004
2666 posts
926 upvotes
kenchau wrote: It's a brother-in-law because it's his wife's brother...not because it's his sister's husband. Unless of course, you think he married his sister. Lol. :lol:

OP, vehicle can only be transferred as a gift to family, once every 12 months.
Lol whoops I totally read that wrong
Deal Addict
Dec 9, 2003
4919 posts
762 upvotes
Calgary
You are not gifting it? Pay the sales tax.
[OP]
Sr. Member
User avatar
Aug 29, 2005
643 posts
37 upvotes
Thanks everyone for your feedback. I did check and the family gift can only be done in a 12 month window. I guess I'll have to go the route of selling it to my Brother in Law now. :(
Temp. Banned
Aug 7, 2011
6623 posts
991 upvotes
Vaughan
gottagetta wrote: Thanks everyone for your feedback. I did check and the family gift can only be done in a 12 month window. I guess I'll have to go the route of selling it to my Brother in Law now. :(
Sell it, and put a lower amount on the UVIP to pay less tax.

And before someone quotes me saying tax fraud blah blah blah, I don't care. Everyone does it anyway - double taxing on vehicles is stupid to begin with.
Deal Fanatic
Apr 11, 2006
8322 posts
2896 upvotes
Mississauga
squadz wrote: Sell it, and put a lower amount on the UVIP to pay less tax.

And before someone quotes me saying tax fraud blah blah blah, I don't care. Everyone does it anyway - double taxing on vehicles is stupid to begin with.
It's not that it's tax fraud, because OP actually merely wants to transfer the car to brother-in-law, not sell.

The problem with you and everyone that makes that suggestion is that the MTO actually charges tax on the higher value of the wholesale price listed on the UVIP or the written sale price. So in many instances, the suggestion becomes irrelevant.

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