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laguirre2009
New Member

My mothermother-in-law is giving me a Mercedes. It may be worth $40k. Should I pay $500 for car as a sale or get as a gift through California DMV paperwork?

 
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Critter
Level 15

My mothermother-in-law is giving me a Mercedes. It may be worth $40k. Should I pay $500 for car as a sale or get as a gift through California DMV paperwork?

That is a question for the CA DMV ... this is an income tax forum. 

Anonymous
Not applicable

My mothermother-in-law is giving me a Mercedes. It may be worth $40k. Should I pay $500 for car as a sale or get as a gift through California DMV paperwork?

from a gift tax standpoint if your MIL gives you a $40K car for $500 the IRS is going to say you got a $39,500 gift.  by the way your MIL is required to file a gift tax return.   

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