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Level 15
Level 15

Get your taxes done using TurboTax

You have to consider two different taxes - income tax and gift tax. TurboTax is for income tax, not gift tax.

There is no income tax deduction for making a gift to another person, your daughter or anyone else. You do not show it anywhere on your income tax return. You do not enter it in TurboTax.

You can make gifts of up to $14,000 per year to any person without having to file a gift tax return or pay gift tax. If you were the sole owner of the car, and it was worth more than $14,000 when you gifted it to your daughter, you have to file a gift tax return. If you are married, you can indicate on the gift tax return that you and your spouse are splitting the gift, so that you and your spouse each made a gift of not more than $14,000 (assuming that the car was worth $28,000 or less). Even if you do not split the gift, you will not have to pay any gift tax unless your total lifetime gifts to everyone are more than $5.49 million. However, you still have to file the gift tax return. You cannot file a gift tax return with TurboTax. TurboTax is only for income tax, not gift tax.

(The annual gift tax exclusion will increase to $15,000 for 2018. However, it's possible that tax reform now being considered in Congress will change the gift tax rules.)

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