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I won a car in 2006 in a faffle to benefit breast

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cancer research. I paid about...
I won a car in 2006 in a faffle to benefit breast cancer research. I paid about $4000.00 in Federal income tax plus the sales tax for the car. In 2007 I gave the car to my son. He did not pay anything for it. Is there any deduction that I can claim to offset the money I paid on the taxes. Thanks for your help.
Submitted: 9 years ago.Category: Tax
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2/2/2008
Tax Professional: Ed Johnson, Tax Preparer replied 9 years ago
Ed Johnson
Ed Johnson, Tax Preparer
Category: Tax
Satisfied Customers: 10,760
Experience: GPHR Cert; U.S. Treasury Tax Advocacy Panel appointee
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Dear debbiez,

Unfortunately, there are no deductions you can take for gifting this car to your son.

INstead, if the car was valued at more than 12,000 dollars (using blue book value or other appraisal method), then you would have to file a gift tax return with the IRS. But, if you have not exceeded one million dollars in such gifts in your life time, you would not be assessed any gift tax.

 

Ed Johnson
Ed Johnson, Tax Preparer
Category: Tax
Satisfied Customers: 10,760
Experience: GPHR Cert; U.S. Treasury Tax Advocacy Panel appointee
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Customer reply replied 9 years ago
Now I am more upset because this car has just cost me another $30.00..lol.thanks for your help. I hope you have a great day!
Tax Professional: Ed Johnson, Tax Preparer replied 9 years ago

Dear Debbie,

LOL...no offence...I understand. Here is some good news; as a gift, your son does not have to pay any taxes.

The IRS is like getting sticky stuff on your fingers and then trying to get it off with luke warm water, using toilette paper.

 

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Customer reply replied 9 years ago
I think there should be a warning on raffle tickets that reads "winning this prize may be hazardous to your bank account". Thanks again for your help. You have put the question to rest.And I will forever stay clear of big prize winning raffles.
Tax Professional: Ed Johnson, Tax Preparer replied 9 years ago
Thank you best of luck.
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