Gifting $24,000 car to son—Gift tax exclusion

[Anonymous]

I wouldn't do it for $1 but I'd definitely pick a number that would keep the paperwork simple. How about $3500?

Unless one of you wants to run for office, I would not worry about it at all.

[Anonymous]

OP here. Wow, all these responses! I reached out to my accountant (probably should have done that first). He said we can simply elect to split the gift (of the car) between my husband and me. There is a form 709 we would complete to do that. It then would be considered a gift of $12,000 from me and the same from my husband. It is below the annual gift exclusion amount so does not count against the lifetime exclusion.

This will work for us and we don’t need to add my husband to the title. I will be careful about sales tax possibilities and look into that.

[Anonymous]

Anonymous wrote:OP here. Wow, all these responses! I reached out to my accountant (probably should have done that first). He said we can simply elect to split the gift (of the car) between my husband and me. There is a form 709 we would complete to do that. It then would be considered a gift of $12,000 from me and the same from my husband. It is below the annual gift exclusion amount so does not count against the lifetime exclusion.

This will work for us and we don’t need to add my husband to the title. I will be careful about sales tax possibilities and look into that.

The “do nothing” pps for the win!

[Anonymous]

Anonymous wrote:OP here. Wow, all these responses! I reached out to my accountant (probably should have done that first). He said we can simply elect to split the gift (of the car) between my husband and me. There is a form 709 we would complete to do that. It then would be considered a gift of $12,000 from me and the same from my husband. It is below the annual gift exclusion amount so does not count against the lifetime exclusion.

This will work for us and we don’t need to add my husband to the title. I will be careful about sales tax possibilities and look into that.

Isn't Form 709 what you were trying to avoid filing in in the first place?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Just give him the car. Nobody is going to come after anyone for this. Do nothing.

This. Keep it in your name OP, kid pays for insurance/etc. himself.

Don’t even have to do that…give him the car…change the title. Nobody cares. It’s not something anyone would care about unless you file the gift tax form and now get on the radar.

This. The IRS isn’t checking this kind of thing.

More really horrible advice. “Take it, you won’t get caught.” Also very unethical.

Lots of parents "sell their kids their first car for $1" and nothing unethical about it. IRS is not checking on things like that.

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP here. Wow, all these responses! I reached out to my accountant (probably should have done that first). He said we can simply elect to split the gift (of the car) between my husband and me. There is a form 709 we would complete to do that. It then would be considered a gift of $12,000 from me and the same from my husband. It is below the annual gift exclusion amount so does not count against the lifetime exclusion.

This will work for us and we don’t need to add my husband to the title. I will be careful about sales tax possibilities and look into that.

Isn't Form 709 what you were trying to avoid filing in in the first place?

LOL. Let’s let it go at this point.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Just give him the car. Nobody is going to come after anyone for this. Do nothing.

This. Keep it in your name OP, kid pays for insurance/etc. himself.

Don’t even have to do that…give him the car…change the title. Nobody cares. It’s not something anyone would care about unless you file the gift tax form and now get on the radar.

This. The IRS isn’t checking this kind of thing.

More really horrible advice. “Take it, you won’t get caught.” Also very unethical.

First of all, this kind of transfer of used vehicles from parent to child has been going on for generations. We did ours several times at AAA. There is no sale, just a transfer of title. There is even a box to check if it involves a family member. If you want to make things complicated for yourself, go ahead.

Yeah I don't get it. Why can't you add your son to the title now, and then later remove yourself from the title? Do you both use the car now?

This is what my dad did years ago. He paid the monthly bill. Then he removed himself from the title and it was just mine.

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP here. Wow, all these responses! I reached out to my accountant (probably should have done that first). He said we can simply elect to split the gift (of the car) between my husband and me. There is a form 709 we would complete to do that. It then would be considered a gift of $12,000 from me and the same from my husband. It is below the annual gift exclusion amount so does not count against the lifetime exclusion.

This will work for us and we don’t need to add my husband to the title. I will be careful about sales tax possibilities and look into that.

Isn't Form 709 what you were trying to avoid filing in in the first place?

OP here. I wanted to avoid it because I thought you only filed it when you exceeded the annual exemption, meaning it would count against your lifetime exemption/estate tax limit. I didn’t want that. But, a one time filing to make the gift be fully exempt under the annual limit on a fine with me.

[Anonymous]

Unless your estate is worth more than the current lifetime exclusion of $13.99M it’s unlikely you’ll pay any gift taxes. You’ll still have to file a gift tax return.

[Anonymous]

Anonymous wrote:Unless your estate is worth more than the current lifetime exclusion of $13.99M it’s unlikely you’ll pay any gift taxes. You’ll still have to file a gift tax return.

Some of us will have that issue, so it is relevant. Also, unless congress acts by 12/31/25, that $13.99M will sunset to ~$5.5M, so many more might have a problem

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Just give him the car. Nobody is going to come after anyone for this. Do nothing.

This. Keep it in your name OP, kid pays for insurance/etc. himself.

Don’t even have to do that…give him the car…change the title. Nobody cares. It’s not something anyone would care about unless you file the gift tax form and now get on the radar.

This. The IRS isn’t checking this kind of thing.

More really horrible advice. “Take it, you won’t get caught.” Also very unethical.

First of all, this kind of transfer of used vehicles from parent to child has been going on for generations. We did ours several times at AAA. There is no sale, just a transfer of title. There is even a box to check if it involves a family member. If you want to make things complicated for yourself, go ahead.

Yeah I don't get it. Why can't you add your son to the title now, and then later remove yourself from the title? Do you both use the car now?

This.

Too many Ned Flanders in this thread bending over to over-obey "da laws" and such.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Just give him the car. Nobody is going to come after anyone for this. Do nothing.

This. Keep it in your name OP, kid pays for insurance/etc. himself.

Don’t even have to do that…give him the car…change the title. Nobody cares. It’s not something anyone would care about unless you file the gift tax form and now get on the radar.

True. But what's the benefit of changing the name on the title? Doesn't' that cost a fee? Why pay it for no reason.