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Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
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I am buying a new car cash for my son, they are paying 4500

Customer Question

I am buying a new car cash for my son, they are paying 4500 for my sons klunker, but I need to transfer the title to my name for his klunker. Should I give them the cash now or wait until I get the klunker's title transferred which may take a week then pay them the cash, what are the chances they will do something underhanded... it is a KIA dealership. Should I get anything in writing and what should I get in writing for this? Steve
Submitted: 8 years ago.
Category: Tax
Expert:  Merlo replied 8 years ago.
Hello Mail,

You cannot transfer the title to the clunker and still claim this credit. Part of the rules that go along with this credit is that you must have been the owner of that "clunker" for at least 12 months.

The only way you can claim this $4,500 rebate is if you son who currently owns the clunker is the one who purchases the new vehicle in his name. You can always co-sign the loan on his behalf if you need to, but you cannot transfer title of the old car and still qualify for this $4,500.

If this was helpful please press the Accept button. Positive feedback is also appreciated.

Thank you Mailznight.