I have a reservation for a Tesla Model 3 and just found out that my brother recently got a Model X. Tesla says they plan to give priority to previous owners, so I was wondering if it would make sense for him to buy it instead and then transfer the title to me. Would that create additional tax liability? I know that transfers between family members are sometimes not taxed, but that seems to vary by state, so I'm not sure which state's laws I should be looking at. He lives in California, and I live in Washington.
Based on the WA DOL page, I think I wouldn't have to pay tax, but there may be something else I'm not thinking of.
Vehicles received as gifts
- If you can provide proof that the person who gave you the vehicle or vessel paid sales or use tax on the vehicle or vessel, no use tax is due.
