Level 2

Other tax discussions

I gave my 18-year-old dependent son who is a full-time college student $ 20,000 to buy a car, which he bought in his name.

 

Now he is selling the car and he will receive the money.  Is this considered a capital gain for him? If so, does he have to pay the IRS tax on this?

 

Which IRS document deals with this subject?

 

Thanks!