Gift of a pickup

[reta7]

What is the name of your state (only U.S. law)? Texas

My parents want to give my son thier older model pickup. It is worth less than $8000. Should they sell the pickup to us at a reduced rate or gift it? I want to do what is best for them.What is the name of your state (only U.S. law)?

 

[Antigone*]

What is the name of your state (only U.S. law)? Texas

My parents want to give my son thier older model pickup. It is worth less than $8000. Should they sell the pickup to us at a reduced rate or gift it? I want to do what is best for them.What is the name of your state (only U.S. law)?

The gift will not affect you at all when it comes to your or your son's taxes. Your parents should consult their tax adivsor about the gift. We do not have enough information about their financial situation to give any advice to you about them.

 

[LdiJ]

What is the name of your state (only U.S. law)? Texas

My parents want to give my son thier older model pickup. It is worth less than $8000. Should they sell the pickup to us at a reduced rate or gift it? I want to do what is best for them.What is the name of your state (only U.S. law)?

The gift will not have any effect on either your son's taxes, or your parent's taxes. The amount of money is well below the gift reporting threshhold.

 

[Zigner]

The gift will not have any effect on either your son's taxes, or your parent's taxes. The amount of money is well below the gift reporting threshhold.

Assuming that other gifts aren't ALSO given that would take it OVER the threshold. As asked, the question doesn't give enough information to make a definitive statement such as this.

 

[Antigone*]

Assuming that other gifts aren't ALSO given that would take it OVER the threshold. As asked, the question doesn't give enough information to make a definitive statement such as this.

Excatly why I worded my response as I did

 

[LdiJ]

Assuming that other gifts aren't ALSO given that would take it OVER the threshold. As asked, the question doesn't give enough information to make a definitive statement such as this.

The threshhold is 13k per person. Which means grandma can give junior 13k and grandpa can give junior 13k worth of gifts.

I suspect that if grandma and grandpa had already given gifts to junior of over 18k (combined) that this question would not even be being asked.

Oh, and just for educational purposes, paying for educational or medical expenses for a child or grandchild does not count as a gift.

 

[xylene]

As I answered in the dupe, the grandparent(s) will have to fill out the Texas DMV gift affidavit as a filial gift of a motor vehicle. (This saves son and proves it was a gift...)

 

[Zigner]

I suspect that if grandma and grandpa had already given gifts to junior of over 18k (combined) that this question would not even be being asked.

Grandma/Grandpa aren't the ones on here asking, are they?

You posted your initial answer as an unqualified statement. That is what I wanted to clear up.

 

[Free_Advice]

What is the name of your state (only U.S. law)? Texas

My parents want to give my son thier older model pickup. It is worth less than $8000. Should they sell the pickup to us at a reduced rate or gift it? I want to do what is best for them.What is the name of your state (only U.S. law)?

This would only be a sales tax issue (no gift tax); the state has schedules they'll go by in this case (a gift). If your parents want, they can pay the tax.