How to avoid sales tax on selling car for a buyer in California.?

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hakchanny603

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Random thought. My friend just sold a car worth around 5000 in california. The buyer asked him to declare it as "gift" i guess in order to avoid paying sales tax in dmv. so my question is if my friend do declare it as a gift, is there any consequence for him other than the fraud issue? I hear a lot of answer regarding this but I don't know which one is the right one (ex. selling it for $1, declaring as a gift). What is the "right" answer. please help. oh by the way, if it is a gift, will my friend have to file gift tax return on his, and what about to the buyer? does he have to include it as a gross income? thanks everyone.
 
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