Paying taxes again for a car?

Question

I have a lease that I will pay off. The type off lease I have, I already paid the taxes up front. The problem is the car is under my father's name even though I've been paying for the whole thing myself. Now the car will be transferred to my name. Do I have to pay taxes again? My father will have to give it to me as a gift (even though I've been paying for it the whole time) , but then would I have to report this and pay taxes again on my 2007 tax return??

Answer 1

Gifts are never taxable to the recipient.

Depending upon state law, you may or may not have to pay the Use Tax (Sales Tax) when you register it in your name. Some states don't levy Use Tax on gifts while others levy it on the FMV of the vehicle.

Answer 2

Depends on the state but most states let a relative gift a car with no tax due.

Answer 3

Usually when the car title is transferred within the family, you don't have to pay sales tax. Check with your local dept of motor vehicles, since different states could have different rules.