Writing Off Car As A Gift?
#1
Instructor
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Writing Off Car As A Gift?
I was selling my TSX.
During the process, the couple that was buying my car did not know they had to pay on the car and came a big debate about if the DMV would know if we claim it as a gift.
Neither of us wanted to take any risks so paid the full amount, but my friends told me that everyone writes it off as gifts.
I mean, if it's a $12k car, I feel you can give it as a gift, but not so sure if the car goes $20k+.
Anyone have any tips/knowledge on this?
During the process, the couple that was buying my car did not know they had to pay on the car and came a big debate about if the DMV would know if we claim it as a gift.
Neither of us wanted to take any risks so paid the full amount, but my friends told me that everyone writes it off as gifts.
I mean, if it's a $12k car, I feel you can give it as a gift, but not so sure if the car goes $20k+.
Anyone have any tips/knowledge on this?
#2
Burning Brakes
Join Date: Dec 2004
Location: Boston MA
Age: 44
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there is a max gift you can give a person per year (i believe it is 10k, my knowledge may be outdated on that amount though).
So if you give your sibling a 20k car, only 10k is a tax-free gift; for the other 10k, your sibling has to pay taxes on it (taxes are paid by the recipient of a gift)
What you're suggesting is borderline tax fraud
1. "Give" a 10k car to someone
2. Said person "gives" you a 10k check
I dont think the irs would look too kindly on that if you were audited
So if you give your sibling a 20k car, only 10k is a tax-free gift; for the other 10k, your sibling has to pay taxes on it (taxes are paid by the recipient of a gift)
What you're suggesting is borderline tax fraud
1. "Give" a 10k car to someone
2. Said person "gives" you a 10k check
I dont think the irs would look too kindly on that if you were audited
#5
If you get audited you're going to have a VERY difficult time convincing an auditor that is a legit gift.
Sadly, this reminded me of my beloved old '89 Legend which I had since new and I actually did donate to a charity organization recently since it needed more work than it was worth. I told them exactly what was wrong with it and they were happy to get it anyway.
Sadly, this reminded me of my beloved old '89 Legend which I had since new and I actually did donate to a charity organization recently since it needed more work than it was worth. I told them exactly what was wrong with it and they were happy to get it anyway.
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#10
I now drive an accord....
Originally Posted by bgsm1th
My dad gave me the title to my first car as a H.S. graduation gift, it was only worth $3,000, but we were NOT able to claim it as a gift...
![2 Cents](https://acurazine.com/forums/images/smilies/2cents.gif)
Here in PA its perfectly legal to give a family member a car, bike, etc... and not pay taxes. They even have a form for it at the DMV. Ive done it many many times
#11
fap fap fap
here in WA i just sold my 02 accord to my brother. i didnt even have to ask, DMV insisted i wrote down "gift" on the title and said i wouldnt have to pay any taxes
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