10 Aug How can we retitle a car from Pennsylvania to N.J.?

Q. My husband has an LLC in Pennsylvania, where his business car is registered. He is now moving to New Jersey and would like to transfer that car to New Jersey and register it in his own name. Is there any way he can make a transfer without paying tax? Can he make it as a gift?
— Trying to help

A. Welcome to the Garden State.

There are several steps he has to take to make this change.

First, he will need a valid driver’s license in New Jersey, and be able to show his Social Security number, have a valid email address and proof of a New Jersey auto insurance policy, said Jody D’Agostini, a certified financial planner with Equitable Advisors/The Falcon Financial Group in Morristown.

“Since he is transferring ownership, you will need to register in person at one of the New Jersey Motor Vehicle agencies,” she said. “Since he is moving to New Jersey, he needs to make the transfer within 60 days of establishing residency.”

He will need to present the original out-of-state title and complete an application for a certificate of ownership, she said.

It’s fine to transfer the title to a person from the business, and this requires a bill of sale, she said.

“You will need to transfer title using the reverse side of the vehicle’s title and include a bill of sale,” she said. “That should include the buyer’s name and address, the date of the sale and sales price, as well as the odometer reading.”

You will need to pay the transfer and other applicable fees, she said, as well as sales tax on the amount of the purchase price. If the car has been depreciated and has little value, you would not likely need to pay much sales tax and you can reflect that price on the title, she said.

“Alternatively, he can gift the car from the business to himself. Again, the paperwork needs to be completed in person at a NJ Motor Vehicle Agency,” she said.

You should make “gift” in the section for the price. The annual exclusion moved up to $16,000 per year in 2022.”

If the car is received as a gift, no New Jersey sales tax will be due.

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This story was originally published on Aug. 10, 2022.

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