Monday, August 8, 2011

Can you put a car title in someone else's name and sell it?

My neighbor buys cars and fixes them and sells them out of his garage. In the state of Kansas you can only sell five cars from your home without a dealers license. To avoid getting a dealers license, he wants to put some titles in my husbands name. I just don't feel comfortable with all that. What are the ramifications of doing business like that on our end? He is a good mechanic, so I don't have any qualms about his work. Our neighbor has already used his five times up and is chomping at the bit for another car, but he needs my husbands name on the title. Please help with any info you have. What are the legal issues as well as how does that look on taxes at the end of the year? Since the title is in our name, would we have to claim that as income at the end of the year even though we saw no cash?

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