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Taxes: Selling my car

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malmit

Junior Member
What is the name of your state? VA

I am thinking about selling my car to my son in law but have questions on how to do it. If I could then I was just give it to him for free, but I believe there would be gift tax that I would need to pay. Can I sell my car for $1 to him so that no taxes will need to be charged?

Thanks in advanced!
Tim
 


LdiJ

Senior Member
What is the name of your state? VA

I am thinking about selling my car to my son in law but have questions on how to do it. If I could then I was just give it to him for free, but I believe there would be gift tax that I would need to pay. Can I sell my car for $1 to him so that no taxes will need to be charged?

Thanks in advanced!
Tim
You are allowed to "gift" to any person the amount/value of 12k in a single given year without having to file a gift tax return. Even if you have to file a gift tax return there would be no gift taxes due unless you have already exceeded your lifetime exclusion for gifting of 1 million dollars.

If you sell it to him for something around fair market value then odds are there would be no tax consequences at all...because your basis in the car will always be higher than its fair market value....which is why there is virtually never a tax consequence for selling a car....other than a potential gift consequence if its sold for below market value.
 

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