Federal gift taxes are not paid by the recipient. However, in the rare case where the donor does not have the resources to pay gift taxes they may owe, the IRS might try to recover some or all of the gift from the recipient.
Since you posted this question in the Car Buying category: Some states may impose a sales tax on the Blue Book value of the car being transferred. This is a matter of state law and you should check with your DMV for details.
Federal gift taxes are not paid by the recipient. However, in the rare case where the donor does not have the resources to pay gift taxes they may owe, the IRS might try to recover some or all of the gift from the recipient. The donor may owe a gift tax depending on the size of the gift and depending on what other gifts the donor has given.
Income taxes are not due for this type of transaction. The person giving the gift may be required to file a gift tax return if the property is valued over the threshold depending on what year the gift was given and recorded. If you sell the property, you will have a reportable income from the sale but at the time you are given the property you will not have to pay income taxes.
No.
i received $20,000 as a gift how much taxes do i have to pay on the $7,000 overage
The receiver of a qualified gift does NOT have pay any federal income tax on the value of the car as a gift. BUT the receiver will have to pay some taxes to the DMV when the car is registered in the new owner name in the state and to get the new license plates, etc.
Federal gift taxes are not paid by the recipient. However, in the rare case where the donor does not have the resources to pay gift taxes they may owe, the IRS might try to recover some or all of the gift from the recipient. The donor may owe a gift tax depending on the size of the gift and depending on what other gifts the donor has given.
You don't pay the taxes, the person receiving the car as a gift does.
Income taxes are not due for this type of transaction. The person giving the gift may be required to file a gift tax return if the property is valued over the threshold depending on what year the gift was given and recorded. If you sell the property, you will have a reportable income from the sale but at the time you are given the property you will not have to pay income taxes.
Yes.
Gift taxes are owed by the party who gives the gift and not the recipient.
No.
Someone has to pay taxes, yes. Contact your local Bureau of Motor Vehicles.
You will pay some kind of tax.
The amount a parent can give to a child without being required to pay gift taxes is $13,000.00.
i received $20,000 as a gift how much taxes do i have to pay on the $7,000 overage
The receiver of a qualified gift does NOT have pay any federal income tax on the value of the car as a gift. BUT the receiver will have to pay some taxes to the DMV when the car is registered in the new owner name in the state and to get the new license plates, etc.
You don't have to pay taxes when selling a motorcycle, but the buyer has to pay taxes when he goes to the title agency. Some people say the vehicle is a gift so they can avoid paying tax.