Do I claim a gifted car?

[winkman72]

If I gift car to daughter do I need to claim on my taxes? Will she need to claim on her taxes?

[Zbucklyo · Accepted solution]

No, neither of you have to claim it on your taxes.  However, if the fair market value of the car was more than $14000 at the time of the gift, you need to fill out Form 709, a gift tax return.  You do not include that with your income tax filing.

[winkman72]

That is what I thought but the ex was saying our daughter would have to claim the gift.

[Angela723]

Is this still true? I live in NYS and a good friend wants to gift me her trailblazer and we were wondering the samething if either of us were going to have to claim it on our taxes. Her ex and my current spouse is saying we both do and to sell or say we should it cheap so that way we don't have all this mix up complications when filing for our taxes at the beginning of the year.  

[NCperson]

@Angela723 - the recipient does not have to report anything, regardless of the value.

The donor needs to file a gift tax form (which is separate from the income tax forms) if the value of the car exceeds $16,000. There is no tax to pay for gifting purposes. 

[Angela723]

Ok so she's gotta fill the form out and I fill nothing out. I'm new to all this craziness lol. I just don't wanna screw either of us hence came to TurboTax

[NCperson]

@Angela723 - that is correct,  assuming the value of the car exceeds $16000, then yes she needs to fill out the form..   Regardless of the value, you have no reporting requirement.

does she and she alone own the car? because, let's say she and someone else owns the car, then there is no form required unless the car 's value exceeds $32,000.  the requirment is based on EACH donor's gift, which in this case would be $16,000 EACH.

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