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New Member
posted Jun 6, 2019 5:53:48 AM

If you buy a 25,000.00 car for a girl friend as a gift. Does she need to claim it on her taxes?

I bought a 25,000.00 dollar car for someone, do they need to pay taxes on it?  They are not related to me.

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1 Best answer
Level 15
Jun 6, 2019 5:53:49 AM

A gift received from an individual is not reported on a federal tax return, regardless of the amount received or the value of the gift received.

The giver of the gift to an individual is required to report the gift given if the value of the gift is over $14,000.  Use IRS Form 709 Gift Tax Return to report the gift given.  There would not be any gift taxes owed if the aggregate of all gifts that have been given is less than $5.45 million.

IRS Form 709 - https://www.irs.gov/pub/irs-pdf/f709.pdf

IRS Form 709 instructions - https://www.irs.gov/pub/irs-pdf/i709.pdf

2 Replies
Level 15
Jun 6, 2019 5:53:49 AM

A gift received from an individual is not reported on a federal tax return, regardless of the amount received or the value of the gift received.

The giver of the gift to an individual is required to report the gift given if the value of the gift is over $14,000.  Use IRS Form 709 Gift Tax Return to report the gift given.  There would not be any gift taxes owed if the aggregate of all gifts that have been given is less than $5.45 million.

IRS Form 709 - https://www.irs.gov/pub/irs-pdf/f709.pdf

IRS Form 709 instructions - https://www.irs.gov/pub/irs-pdf/i709.pdf

Level 15
Jun 6, 2019 5:53:51 AM

TurboTax does not prepare Form 709 gift tax returns.