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New Member
posted Jun 4, 2019 1:26:20 PM

I gifted my car to my Daughter but still appears under my name, how do I declare it in TurboTax? can I show is part of her heirs? how can I show it for my tax deductions?

Need to declare I donated or gifted my car to my daughter and in the other side I was told parents can give as much as 28K per year to their children as donations or gifts or heirs, but how that amount be declared in TurboTax and does that helps for tax deductions or not if so where specifically in TurboTax this info is input?

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1 Best answer
Level 15
Jun 4, 2019 1:26:22 PM

You have to consider two different taxes - income tax and gift tax. TurboTax is for income tax, not gift tax.

There is no income tax deduction for making a gift to another person, your daughter or anyone else. You do not show it anywhere on your income tax return. You do not enter it in TurboTax.

You can make gifts of up to $14,000 per year to any person without having to file a gift tax return or pay gift tax. If you were the sole owner of the car, and it was worth more than $14,000 when you gifted it to your daughter, you have to file a gift tax return. If you are married, you can indicate on the gift tax return that you and your spouse are splitting the gift, so that you and your spouse each made a gift of not more than $14,000 (assuming that the car was worth $28,000 or less). Even if you do not split the gift, you will not have to pay any gift tax unless your total lifetime gifts to everyone are more than $5.49 million. However, you still have to file the gift tax return. You cannot file a gift tax return with TurboTax. TurboTax is only for income tax, not gift tax.

(The annual gift tax exclusion will increase to $15,000 for 2018. However, it's possible that tax reform now being considered in Congress will change the gift tax rules.)

7 Replies
Level 15
Jun 4, 2019 1:26:22 PM

You have to consider two different taxes - income tax and gift tax. TurboTax is for income tax, not gift tax.

There is no income tax deduction for making a gift to another person, your daughter or anyone else. You do not show it anywhere on your income tax return. You do not enter it in TurboTax.

You can make gifts of up to $14,000 per year to any person without having to file a gift tax return or pay gift tax. If you were the sole owner of the car, and it was worth more than $14,000 when you gifted it to your daughter, you have to file a gift tax return. If you are married, you can indicate on the gift tax return that you and your spouse are splitting the gift, so that you and your spouse each made a gift of not more than $14,000 (assuming that the car was worth $28,000 or less). Even if you do not split the gift, you will not have to pay any gift tax unless your total lifetime gifts to everyone are more than $5.49 million. However, you still have to file the gift tax return. You cannot file a gift tax return with TurboTax. TurboTax is only for income tax, not gift tax.

(The annual gift tax exclusion will increase to $15,000 for 2018. However, it's possible that tax reform now being considered in Congress will change the gift tax rules.)

New Member
Jun 4, 2019 1:26:23 PM

Thanks for your response very illustrative, however where do I file a gift tax return? and yes the car is more than 35K

Level 15
Jun 4, 2019 1:26:24 PM

A gift tax return is filed on Form 709. Consumer tax software generally does not handle gift tax returns. You could download the form and instructions from the IRS web site and complete it by hand. However, if you are in a position to give away a car that is worth over $35,000 used, you probably have substantial assets. You should consult a local tax professional. The tax pro can advise you on gift and estate tax considerations (they are linked), and prepare the gift tax return for you. (Professional tax software does prepare gift tax returns.) Because of the possible changes in gift and estate taxes, as well as income tax, resulting from tax reform, it is particularly important to be in touch with a tax professional at this time. Estate planning is not a do-it-yourself project.

New Member
Jun 4, 2019 1:26:26 PM

I did a mistake the car is worth around 25K and was given to my Daughter not to anyone else

Level 15
Jun 4, 2019 1:26:27 PM

Even at that level I would still recommend consulting a tax professional. You still have to file a gift tax return.

Level 15
Jun 4, 2019 1:26:30 PM

"Gift Tax" is somewhat of a misnomer.  Even though a gift tax return may be required, very few people ever actually pay federal gift tax. The purpose of the gift tax return is usually only to document a reduction in the allowable estate tax exemption.
See <a rel="nofollow" target="_blank" href="https://turbotax.intuit.com/tax-tools/tax-tips/Tax-Planning-and-Checklists/The-Gift-Tax-Made-Simple/INF12127.html">https://turbotax.intuit.com/tax-tools/tax-tips/Tax-Planning-and-Checklists/The-Gift-Tax-Made-Simple/INF12127.html</a>

Level 9
Jun 4, 2019 1:26:33 PM

If ownership of the car is in your name, as you have indicated, then no gift has been completed.  You still own the car.  No deduction applies (even if you transferred ownership) to an individual, and no gift tax return is required.