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Can I gift/give my car to my son and is there a tax burden involved in doing so?
Anonymous2 views3 answers
I am retired, 70 yrs. old. I would like my son to have my 12 yr. old car instead of trading it in on the new car I want to buy. What is the best way to handle this transaction so we can both avoid unnecessary taxes or costs? Can I just transfer the title to him and leave it at that or is it not that simple? No money is changing hands so does this transaction need to be declared on our tax returns this year?
Gifts of this nature don't usually generate tax liability and likely fall within the allowable annual gift parameters to avoid taxation. If the car is of substantial value that may change. But otherwise, you should be fine in giving him the car and not worrying about the tax.
Good luck.
Hello. Minnesota has a special Affidavit which you will need to complete (see the MN Dept of Public Safety website). I suggest you also read the IRS Instructions for Form 709, and then contact a private attorney or a CPA should you need legal advice or assistance. This website provides general information, not legal advice. Some attorneys, myself included, are available seven days for emergency legal needs. Many attorneys will confer initially at no charge. Then, if legal work is performed, some attorneys, myself included, will provide a reduced fee for financial hardship. Some attorneys, myself included, may also assist you in limited scope manner to conserve legal costs. All the best.
