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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28081
Experience:  Taxes, Immigration, Labor Relations
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I currently lease a 2008 Mercury Mariner and as the end of

Customer Question

I currently lease a 2008 Mercury Mariner and as the end of the lease approaches in June 2011, I would like to purchase the auto outright from the dealer and than am considering just giving the car to my son...what are my tax responsibilities/the law  IRS/State in gifting this car to my son? and what tax Irs/state tax laws will he have to claim etc.?
Submitted: 5 years ago.
Category: Tax
Expert:  Lev replied 5 years ago.


Hi and welcome to Just Answer!
There is no tax consequences for your son - gift is not a taxable income in the US regardless of the value.
For you - according to current gift tax laws - any person may gift up to $13,000 per person per year without any tax circumstances.

If during the year - you will gift more than $13,000 to any person - you generally will be required to file a gift tax return - but there will not be any gift tax liability unless the lifetime limit of $5,000,000 is reached.
If you gift the property - for gift tax purposes - a fair market value of the property should be used.
Because the value of a 2008 Mercury Mariner is more than $13,000 - - you will be required to file a gift tax return.
Let me know if you need any help.