My father recently passed away and my mother wants to give me and my wife his 2011 truck. The truck has $26K in equity in it but she still owes $10K on the 0% int. loan.
She wanted to give us the truck and she said she would just pay off the $10K in the 16 months left on the 0% int. period.
If she gave us both $13K/each in the trucks equity now, that would be exempt under the current law, but would she have to file a gift tax return if she continued to make the payments?
I haven't gotten a clear answer from our estate planner or accountant yet...
Does anyone have any advice on what would be the best way for her to gift us his truck, with her continuing the payments until completion, without her having to file/pay federal gift tax?
Thx.
n00b
She wanted to give us the truck and she said she would just pay off the $10K in the 16 months left on the 0% int. period.
If she gave us both $13K/each in the trucks equity now, that would be exempt under the current law, but would she have to file a gift tax return if she continued to make the payments?
I haven't gotten a clear answer from our estate planner or accountant yet...
Does anyone have any advice on what would be the best way for her to gift us his truck, with her continuing the payments until completion, without her having to file/pay federal gift tax?
Thx.
n00b