Gifting a car to a parent?

[daughter1]

I want to gift my current car which has a value of $20,000 to my parents. What are the tax ramifications of both parties?

[Marketstar · Accepted solution]

Gifts are neither deductible for the donor nor taxable to the recipient.

Gifts received are not reported on your federal tax return, regardless of the amount received. 

The giver would be required to file a Form 709 Gift tax return if he/she gives over $14,000 to any single individual. Even then, the gifting will not be taxable until the sum total of all gifts exceeds the lifetime limit of $5,490,000

See the following:

https://www.irs.gov/pub/irs-pdf/f709.pdf

https://www.irs.gov/pub/irs-pdf/i709.pdf