Ahujadaddy

I have been searching and researching my complicated issue/situation, but finally i need to post it up and try to get some feed back from you all. So help me out if you can. I've narrowed down my questions and will try to keep it short and simple:

- Currently live with parents in MD.
- Will buy a G37 within a week or so.
- Moving out on my own to VA in December... to a townhome that is being built right now.

From this the issue of taxes, fees, diff state laws all complicate the matter as I will be moving to VA soon. My goal.. is to somehow keep the car "in" MD.

That is, registered, titled, etc in MD. There are many negatives of havin the car in VA and my license be in VA.

Do you guys think I can keep my car on my parents address in MD even after i move? Can i keep my MD drivers license? Would it help if my dad was a co-buyer of my car?

I think that is all possible... but the issue of my drivers license troubles me. I want to be able to take advantage of the tax benefits of paying a home loan. Not sure how all this can work out.
If i have to change my license, i'll have to update my insurance.. which i guess would affect registration.

Any advice or help would reeally be appreciated guys. Right now, I'm

Bombay

I don't know, but I know you have to pay property tax on your car in Virginia, with you buying a townhouse and living in Virginia but buying your car in Maryland, you may have a grace period before you have to register your car in Virginia and pay taxes on it. Don't qoute me on this but if that was case I'm sure a lot of Virginians would buy there car from another state just to avoid paying taxes on it. THEY WANT THEIR MONEY!!!!!!

bostonmerlin

there are many things you have to consider with this "arrangement".. your registration, getting your car inspected, insurance and your drivers license. I dont have answers.. only to say you'll have to constantly dodge the law or bend over backwards just to keep this car in another state.

Ahujadaddy

Yeaa, good points guys... but the thing is, i thought it would be easier for me since i do have a address in MD as well. People can have two houses... two diff places they reside.

Some people have a beach house, and a regular house.

I don't live in VA now. I don't have an address... the house is under construction, but its just a pile of dirt right now. Going to VA after 4 months, so i kno the car will start out being "in" MD.

Thanks for the help so far guys, i kno it's complicated, and im being stubborn.
I have been thinkin about it all week, and have considered everything that will be involved including insurance. Got many answers through research, just at a wall right now.

vj518

Get everything setup in Maryland like you normally would, just don't change any of it when you move to Virginia. There is no way for the government to find out really. Have all paperwork go to your parents address (registration, drivers license, etc). It's not difficult at all.

The only real headaches you'll have are the renewal of your registration and drivers license when you are out of state. Another possibility is if you are in an accident, etc. But There are always ways around things and you can definitely have two addresses.

I've done it like this before and haven't had any problems...(knock on wood)

Ahujadaddy

Yea, i've come to that conclusion too. I leaning towards doing that, there is just the matter of TAXES...

How do you file taxes under this setup? Which state should i pay income tax to?
Keep in mind i want to do the tax write off for interest paid on my new home in VA... while keeping my car and license in MD.

Thanks for all the replies guys... its really helpin =)

vj518

Your property taxes do not have anything to do with your car. They are independent of one another. You will pay income taxes to Virginia. The tax write off for your home doesn't have anything to do with your car/car payment/car insurance/car registration or anything.

I'm no expert on this, but I have never had any issue with Income taxes/Mortgage Interest writeoff (any writeoff for that matter) and it having anything to do with my car.

Ahujadaddy

Sw33t man! Thas wut im lookin for.
So when u did it like this.... did you show the address to which ur car was registered in at all? Maybe like a mailing address i guess?
and which state was ur license in? The one u paid taxes to, or the one where ur car was at?

The way i understand it... you had all ur car "stuff" in one state but never showed that address at all anywhere when you did ur taxes?

Sorry for the questions, but it seems you went through this before and i almost have complete peace of mind about all this.

tiguy99

Check IRS.gov and see if they have a section for vehicle milage writeoff and steps to how its done.

If you work a job in sales and use your vehicle for this you can write off your car expenses in addition to your mileage on your taxes. If you own a home business and receive 1099 income you also qualify for this. I would start there then call H&R block and ask one of them re: this specific part.

What kind of work do you do?

dmkozak

iTrader: (1)

I only want to remind you of one item; your car insurance company will ask the address of where the is garaged at night. In other words, where your car is parked when not at work. If you tell them your parents MD address, and your car is damaged or vandalized at your VA home, your insurance may deny coverage and cancel your insurance. Once your insurance is cancelled for failing to properly inform and notice your insurance company of a change of address, you go into the high risk pool. You will end up with a "bad" insurance company and much higher rates. Your car loan may be called so you will have to pay it off to avoid reposession. Etc, etc.

Insurance just goes along until you need it. If you give an insurance company a reason to deny a claim, the insurance company will take it, deny your claim, cancel your policy and notify the master insurance database (plus both the MD and VA departments of motor vehicles).

Only you can decide if you are willing to take this risk.

G35MC

dmkozak, what you said is not true.

I put my parents home address on my insurance policy along with my drivers license etc... i rented an apartment in NJ and got my car stolen there, I told them I am living in the apartment, and was able to get the money back for the car.