All Things Tax

All Things Tax

Like the title says, from the filing process and tax questions to tax policy and reform, you can search and share All Things Tax here. This is the place to find answers to all your general questions that don't fall under the other categories. And just a reminder: questions about software or online filing should be posted in DIY Products.

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Pioneer
Posts: 2
Registered: ‎08-28-2017
Accepted Solution

Car gifted

My grandmother recently passed and my Dad and Uncle were TOD on the title so they could sign it away. According to Kelly blue book the car is worth about $15,500, and they gifted the car to me. Do they or I need to worry about the gift tax since it was given to me from both of them and they are both married, also what else needs to be done at tax time?
Tax Pro
Posts: 5,536
Registered: ‎02-23-2016

Re: Car gifted

Hi dnf2004,

 

Welcome to the H&R Block community.

 

You do not need to worry about anything here.  The recipient of a gift is not subject to tax on the gift.  However, you may be subject to tax later on if you realize a gain on this vehicle when you sell it.

 

In your situation this gift was received from two individuals so its value could have been up to $28,000 ($14,000 each) before either of these people would have had to worry about anything, and even then there's a chance that they may not have had to actually pay the gift tax.

 

If you have any other questions I'll be glad to help.

 

Louis,

Senior Tax Advisor (Tampa, FL)

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Pioneer
Posts: 2
Registered: ‎08-28-2017

Re: Car gifted

For future reference, what would have to happen when if I sold the car.