a car as a gift

jadeddjay · 01-14-2007, 07:32 PM

i just turned 24 and just gained acceptance into medschool. my parents have always promised me that they would get me a car when i do and... that times here. i am trying to figure out the best option for me... keep in mind that i may or may not take that offer. anyway, for those of you who know.. would a new car for me be considered a taxible gift? there are a ton of things that i need to consider and i feel quite overwhelmed right now, and i am trying to figure out my best options as to dealing with a car payment or a gift that could be taxed... and loans for school and how i/my parents might pay that back. any thoughts?

TommyBahama · 01-14-2007, 07:34 PM

if your parents buy it and then you put it in your name im pretty sure it is taxible.

jadeddjay · 01-14-2007, 07:37 PM

well i know gifts up to 12k are exempt or something so one option is to make sure that my monthly payments dont exceed that for one year... then i get screwed with the interest payments through financing. any other ideas?

ive been reading about quite a few people my age or younger who got a car from their parents.... did they jsut take a hit on the taxes or what?

TommyBahama · 01-14-2007, 07:45 PM

buy it from them for 1 dollar?

jadeddjay · 01-14-2007, 07:51 PM

from the IRS website: "If you sell something at less than its full value or if you make an interest-free or reduced-interest loan, you may be making a gift. "

01-14-2007, 07:32 PM	#1
jadeddjay Major 120 Rep 1,441 Posts Drives: e92 335i, f10 m5 comp Join Date: Oct 2005 Location: jackson, ms iTrader: (4) Garage List 2007 e92 335i [0.00]	a car as a gift i just turned 24 and just gained acceptance into medschool. my parents have always promised me that they would get me a car when i do and... that times here. i am trying to figure out the best option for me... keep in mind that i may or may not take that offer. anyway, for those of you who know.. would a new car for me be considered a taxible gift? there are a ton of things that i need to consider and i feel quite overwhelmed right now, and i am trying to figure out my best options as to dealing with a car payment or a gift that could be taxed... and loans for school and how i/my parents might pay that back. any thoughts?
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01-14-2007, 07:34 PM	#2
TommyBahama Second Lieutenant 12 Rep 258 Posts Drives: e90 330i Join Date: Oct 2006 Location: Umass iTrader: (0)	if your parents buy it and then you put it in your name im pretty sure it is taxible.
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01-14-2007, 07:37 PM	#3
jadeddjay Major 120 Rep 1,441 Posts Drives: e92 335i, f10 m5 comp Join Date: Oct 2005 Location: jackson, ms iTrader: (4) Garage List 2007 e92 335i [0.00]	well i know gifts up to 12k are exempt or something so one option is to make sure that my monthly payments dont exceed that for one year... then i get screwed with the interest payments through financing. any other ideas? ive been reading about quite a few people my age or younger who got a car from their parents.... did they jsut take a hit on the taxes or what?
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01-14-2007, 07:45 PM	#4
TommyBahama Second Lieutenant 12 Rep 258 Posts Drives: e90 330i Join Date: Oct 2006 Location: Umass iTrader: (0)	buy it from them for 1 dollar?
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01-14-2007, 07:51 PM	#5
jadeddjay Major 120 Rep 1,441 Posts Drives: e92 335i, f10 m5 comp Join Date: Oct 2005 Location: jackson, ms iTrader: (4) Garage List 2007 e92 335i [0.00]	from the IRS website: "If you sell something at less than its full value or if you make an interest-free or reduced-interest loan, you may be making a gift. "
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