Gift to family member

[Deb3805]

In 2021 I plan to give my 19 year old daughter a vehicle I currently own (free and clear) that's worth around $23k. I do not claim my daughter as a dependent (her mother does) and she is a full time student where we both live in IL.  Are there any federal and/or state tax consequences that would result from this?

[DoninGA · Accepted solution]

For your daughter there are no tax consequences.  The receiver of a gift does not report the gift on their tax return, regardless of the amount received.

You will have to file a Form 709 for the gift given since it is over the $15,000 exclusion amount for reporting.  You will not owe any gift taxes if the aggregate of all gifts you have ever given is less than $11.58 million.

The Form 709 is not part of your personal tax return and is filed separately from the federal tax return.

TurboTax does not support IRS Form 709

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

[NCperson]

but you can get around the $15,000 if it is You AND your spouse giving the gift because EACH of you is able to give $15,000.............. and the car is worth less than $30,000 😉

[DoninGA]

@NCperson If the ex is not on title as one of the owners that will not work.

[NCperson]

@DoninGA - agreed ,but it wasn't clear if that was the case or not...