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.
Giving is easy and there are no tax issues.
A truck worth this amount of money is far below the gift tax threshold.
They will not have to pay any gift taxes or even file a gift tax return.
They will have to fill out and sign the Texas DMV Form 14-317, Affidavit of Motor Vehicle Gift Transfer, but that is nothing, one page.
All this is for so that people can't claim sales of vehicles as 'gifts'.
No worries. That is a nice thing for your parent to give the child a truck.