I’m in the process of buying a starter car for my niece. What’s the rule on gifting money to a family member and how do you claim that on taxes…or does it help at all? I’m purchasing the car (5-6K) and then signing over to her so that she’ll have ownership/carry insurance on it. I felt like this was the smartest thing to do to keep me from being liable in case an accident was to occur. That being said, if I gift that money to her, does that reduce my taxable income by that amount? I have a tax person, but wanted to get an opinion from people who have done it of how I should do this to insure I don’t screw myself and pay a bunch of extra taxes that I don’t need to.
Trying to be financially responsible and retire at a decent age to fish/hunt 5 days a week. Only way to get there is to keep more of my hard earned money Grampa Easy!
I’m in the process of buying a starter car for my niece. What’s the rule on gifting money to a family member and how do you claim that on taxes…or does it help at all? I’m purchasing the car (5-6K) and then signing over to her so that she’ll have ownership/carry insurance on it. I felt like this was the smartest thing to do to keep me from being liable in case an accident was to occur. That being said, if I gift that money to her, does that reduce my taxable income by that amount? I have a tax person, but wanted to get an opinion from people who have done it of how I should do this to insure I don’t screw myself and pay a bunch of extra taxes that I don’t need to.
I think the rule is if its under aprox $11,000 you can gift it without additional taxes. But I’m far from a tax expert. I think you can buy for over 11,000 and depreciate cars easily too.
I think the rule is if its under aprox $11,000 you can gift it without additional taxes. But I’m far from a tax expert. I think you can buy for over 11,000 and depreciate cars easily too.
First, Most, Biggest
$14,000 for 2015 and the person that receives the money(donee) does not have to pay taxes.
If you didn’t like my answer, why didn’t just ask, The Pod:smiley: Or better yet, skinneej:question:
Peepod told me once that he’s never filed and Skinnee is the only multi-millionaire I know that plays around on a fishing website all day…neither one of these guys play around with the small change I’m talking about.
