2007-10-06 07:32:53 · 6 answers · asked by Counselor 3 in Business & Finance ➔ Taxes ➔ United States
Most likely. You will have to file a Gift Tax return since the value of the car is over $12,000. However, you also have a $1,000,000 lifetime exclusion so unless you have been very generous throughout your lifetime there won't be any Gift Tax due on that single gift.
One thing to keep in mind is that that $1,000,000 exclusion also is tied to your Estate Tax exclusion and reduces it dollar for dollar. Currently the Estate Tax exclusion is $2,000,000 so most taxpayers' estates will never pay any Estate Tax but the executor of your estate will need copies of any Gift Tax returns you have ever filed so make sure that copies of them are filed along with your other important permanent records such as your will, insurance policies and property deeds.
2007-10-06 10:47:47 · answer #1 · answered by Bostonian In MO 7 · 1⤊ 0⤋
I am not answering your question because I feel that there should be some rule under which a gift of car from father to son should qualify.
You can pay $12,000 tax free to any one. Your spouse can pay $12,000 tax free to the same person. So the total is $24,000 for the year 2007. Then on January 1, 2008, another $24,000. This becomes $48,000 without inviting any gift tax implication.
2007-10-06 08:20:58 · answer #2 · answered by MukatA 6 · 0⤊ 0⤋
It depends. First, anyone can give anyone up to $12k/year with no gift taxable event. If you and your son are both married, this allows for 2 givers & 2 recipients for a total of $48 k in gifts, probably enough to buy a new Caddie
THis strategy is known as "gift-splitting". You might also give him $12k now and $12k on Jan 1 and buy a little less car.
Finally, more than $12k/year is a reportable event but not necessarily a taxable event. As previously noted you can use a part of your lifetime gift tax credit now.
2007-10-06 08:20:17 · answer #3 · answered by Hank Roitman, EA 4 · 1⤊ 0⤋
You will probably not pay gift tax. If you give money or property valued at $12,000 or more to an individual, you have to file Form 709 Gift Tax Return.
You have a lifetime exclusion of $1 million before estate and gift taxes are owed.
Your gift will reduce your lifetime exclusion but will not result in tax unless you have already used up your exclusion.
2007-10-06 07:42:35 · answer #4 · answered by ninasgramma 7 · 2⤊ 0⤋
Why don't you just have it registered in both of your names, with his address ?
2007-10-06 07:43:40 · answer #5 · answered by jen 6 · 0⤊ 0⤋
Sell it to him for $1.00 and love and affection.
2007-10-06 09:34:16 · answer #6 · answered by David G 3 · 0⤊ 0⤋