How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Robin D. Your Own Question
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 14876
Experience:  15years with H & R Block. Divisional leader, Instructor
14155347
Type Your Tax Question Here...
Robin D. is online now
A new question is answered every 9 seconds

My girlfriend and I just brought a new car. I payed about

Customer Question

My girlfriend and I just brought a new car. I payed about 10k and she payed about 25k. Is that considered a gift? Do I need to report that on my taxes?
Submitted: 1 year ago.
Category: Tax
Expert:  Robin D. replied 1 year ago.

Hello

It would be a gift if the car is in her name and you gave the money for purchase. You do not have to report the $10,000 though because it is under the yearly allowed amount ($14,000).

If you give any one person more than $14,000 you would have to report the gift but no tax for you to pay as long as you have not used up your lifetime amount for gifts ($5.43 million).

If my answer addressed your question please rate below or above (let me know if you have difficulty as I believe the system changed), if you need more information reply below.

Customer: replied 1 year ago.
Sorry, the title is under my name.
Expert:  Robin D. replied 1 year ago.

Then no it is not a gift from you. She has made the gift if the car belongs to you and she does need to report the amount. Still no tax for her as she can use the lifetime.

Expert:  Robin D. replied 1 year ago.

She would file form 709 to report the gift to you.

Expert:  Robin D. replied 1 year ago.
Customer: replied 1 year ago.
From my end, I do not need to do anything. But for her, all she needs is to file form 709? She don't have to pay taxes because she can use her lifetime 5.43mil. Am I right?
Expert:  Robin D. replied 1 year ago.

That is correct.

She will send the form 709 reporting the gift but her lifetime allowance will save her from any tax on the amount over $14000.

Expert:  Robin D. replied 1 year ago.

I really enjoyed working with you – please feel free to request me again when you come back to ask another question.
Rating lets Just Answer know you were assisted and credits me for my time.

Expert:  Robin D. replied 1 year ago.

If my answer addressed your question please rate below or above (let me know if you have difficulty as I believe the system changed), if you need more information reply below.

Expert:  Robin D. replied 1 year ago.

What other information did you require?

Expert:  Robin D. replied 1 year ago.

Related Tax Questions