NFT: Gifting a car to a family member in NY

you won't have to pay taxes
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In comment 11878086 upstatenyg said:

Quote:

you won't have to pay taxes Link - ( New Window )

That's the exact form I downloaded (these things make my eyes glaze over). My wife called DMV about it and was left uncertain.

Thanks

I don't know the exact amount, but it was $22,000 just a couple of years ago. You shouldn't owe any federal taxes on it, but there may be state taxes due.

This means that anyone can give anyone $14,000 per year with no taxes involved. The IRS tends to get testy on inter family gifts of non-cash because they want to make sure the value is legitimate. If you think the FMV is really $8,000, even if you're wrong, that's a big margin for error before you get to the $14,000 limit.

There isn't even a reporting requirement.

By the way, if any tax was due, it would be due from your father in law. The gift tax is a tax on the ability to make a gift, not to receive one. The idea is that the IRS doesn't want people to give everything away tax free and then avoid the estate tax.

My comments above addressed gift tax consequences, not NY sales tax issues.

I believe with no further documentation. But, you can also fill out the DTF-802 form linked above.

We had a car gifted to us by a non-family member. At the DMV we paid sales tax on the Blue Book value. About 6 weeks after submitting the DTF-802, we received a full refund, down to the penny, of the taxes we paid.