"Gifting" a car

waterytart · Jan 14, 2009

Rhody, thank you for reminding me to say I was talking about federal taxes. I'm not about to try to answer all the different state situations. (But many do mirror federal for gifts.)

TheSportsPredictor · Jan 14, 2009

always_looking said:

tart, thanks for the insight.

BYH, in this day and age, friends and family are the best things about our lives, so whether I gift a car or not, brother I'll take all the friends I can get. Especially 99% of the people on this board.

I pick and choose my spots to post, as you can see by the low total, but I've been a writer for 23 years and I've been on this board every day for about the last 6 or 8 of those. Whether you all know it or not, man you've gotten me through a few rough times with insight, banter, humor and just some good talk.

Yeah, even you slappy, going back to our Michigan days.
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Wow, it's like SportsJournalists.com is a_l's fave TV show and BYH is Kramer, busting through the door and making him laugh.

Baron Scicluna · Jan 14, 2009

waterytart said:

Baron, it's $12,000 per donor per donee. In English: you can gift up to $12,000 each to an unlimited number of recipients. Your spouse can do the same. It's an annual exclusion, not lifetime, so you could continue the gifts every year.
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Thanks. I knew it was something like that.

jps · Jan 15, 2009

Rhody31 said:

My uncle gave me a car and I had to pay a minimal tax on it. On a 6K car, it won't be too much.
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yeah, we got one from in-laws and paid something like a $15 gift tax ... it was a pretty small amount.

Sam Mills 51 · Jan 15, 2009

BYH said:

Oh. Well I've got good friends, I could just use a better car. So thanks but no thanks.
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Maybe so ... but wouldn't it cost another $6,000 or so to decorate the new car with Night Ranger and Dokken decals?

Football_Bat · Jan 17, 2009

waterytart said:

You're fine. The current gift tax exclusion equivalent is $12,000. (FYI: if you exceed that amount, the tax is owed by the donor, not the recipient. Most people don't realize that.)
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What about the Oprah car gift situation a few years ago? I thought a lot of the giftees were stuck with the tax.

(I believe in Texas the amount is equivalent to the state sales tax. Same in Illinois?)

waterytart · Jan 17, 2009

Football_Bat said:

waterytart said:

You're fine. The current gift tax exclusion equivalent is $12,000. (FYI: if you exceed that amount, the tax is owed by the donor, not the recipient. Most people don't realize that.)
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What about the Oprah car gift situation a few years ago? I thought a lot of the giftees were stuck with the tax.

(I believe in Texas the amount is equivalent to the state sales tax. Same in Illinois?)
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From the government's point of view, those weren't gifts, they were winnings. Winnings are considered unearned income, subject to income tax.

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"Gifting" a car

waterytart Active Member

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"Gifting" a car

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