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| *Loan,banking and credit>>>car tax |
If someone gave me a car valued at $15,000 do I have to declair it as income on my taxes? |
If someone gave me a car valued at $15,000 do I have to declair it as income on my taxes? Thanks for holding this open for me... Gift Taxes IRS Tax Tip 2006-14 Quote from IRS: "If you gave any one person gifts in 2005 that valued at more than $11,000, you must report the total gifts to the Internal Revenue Service and may have to pay tax on the gifts. The person who receives your gift does not have to report the gift to the IRS or pay gift or income tax on its value." You are the person recieving the gift. According to IRS Tax Tip 2006-14, you do not have to report the gift or pay income tax on its value. Kojavo, above, correctly states that when you register the car, you may pay state sales tax based on the value, if you live in a sales tax state. Jeff410, also above, found a great cite for you, but seemed to have applied it wrong. Please see: IRS Qoute "Q: What is the gift tax? The gift tax is a tax on the transfer of property by one individual to another while receiving nothing, or less than full value, in return. The tax applies whether the donor intends the transfer to be a gift or not." And again from the IRS: Q: Who pays the gift tax? The donor is generally responsible for paying the gift tax. Under special arrangements the donee may agree to pay the tax instead." Conclusion from Uncle Eric Looks like you pay no income tax! And the donor is responsible for the gift tax. But you might be allowed to pay the gift tax if you really want to! Give your uncle Eric his 10 points and enjoy your very good fortune!! Source(s): http://www.irs.gov/newsroom/article/0,,i... gift tax http://www.irs.gov/businesses/small/arti... No, you just have to pay the taxes on it You have to taxes when you register that car in your name |
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