Sandra Parker3 said:When a parent gifts a car to their kid, there isn't a special tax on the transfer, but if the child is gifting a car back to the parent, then you're looking at a special tax on passenger vehicles.
How much would that even run me?
And why even bother gifting it? If the car is in their name, just leave it that way. During a messy divorce, gifting assets like that can easily be challenged as some kind of shady maneuver to hide property during the split.
They should just get the car looked at and change the locks—find someone else besides the dealership, I'm sure there's someone who won't charge an arm and a leg. Besides, what kind of car are we even talking about here?
You're being a little sketchy with this, and what about the state inspection? Only the owner can handle that, and they can't do it without the actual vehicle being there. 😎
I'm pretty new to all this (just a sophomore in college), so I don't know everything, but I think you might be mistaken...
According to the IRS... heirs and recipients who are in the first line of succession with the decedent or donor qualify for TAX EXEMPTIONS. So, effectively, no tax is paid.🙂
But it looks like someone might get divorced in a way where the car becomes marital property anyway, which would make this whole gifting thing pointless...
I believe I'm right here... if not, please correct me. 😉