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Car Gift Tax
Larry Said:My parents are giving me a car as a gift in NJ. Does sales tax have to be paid even though it is a gift?
We Answered:NJ exempts you from paying the sales tax when the vehicle is a bona-fide gift.
Caroline Said:How do I import Spanish registered car to the UK? Car is a gift though!! so do I need to pay any Spanish Tax?
We Answered:Here's the official bumph about importing it into this country :http://www.direct.gov.uk/en/Motoring/Buy…
Don't know about the Spanish side, that needs investigating locally. I do know that if you're exporting a car from this country you need to tell DVLA so I suspect the same might apply in Spain. Perhaps the Spanish Embassy could help.
Velma Said:WHat is the implication on my tax and other stuff, if I gift a car instead of selling it ?
We Answered:It totally depends where you live, so check with your local DMV. Here in Nevada, you do not need to pay taxes on private party car sales, so that would not be an issue with either of you. But I believe he would have to declare the car's value as income. I don't think you can sell it for $50 and claim it's only worth that. You would still have to use the blue book or appraised value of the car. I'd check with an accountant or someone who files taxes professionally (there are a million people out there who do it) and see what they say.
Remember when Oprah gave all those cars away and the people freaked out on her because they had to pay income tax? It's the same situation.
Cecil Said:Do my parents have to pay sales tax on a car gift?
We Answered:They're going to have to pay 5% of the value of the car in sales tax before they can register the car in addition to the vehicle personal property tax for the county in which they reside before they can register the car, which also has fees.
Kristen Said:I bought my mom a car as a gift, although it was titled in her name. Can I deduct the sales tax on my taxes?
We Answered:Had you bought the car in your name and then gifted it, you would have a deduction. It sounds however that you gifted the deduction to her.
The result may be true, but it also seems unfair as a result of a technicality.
You may a case for claiming the deduction, but it isn't a strong one. You could try, and if you get examined, just cave in. If you don't get examined, then you win.
The above advice is solely because I think you have a case. Otherwise, I would not recommend it. Just so you understand I'm not trying to cross any lines, just resolving doubt in your favor.
We all face many problems related to the tax matters and do not know what to do. In such cases, these articles help us to make the decision easy. Thanks for these answers.