Originally posted by: kranky
No, because for a donation to be tax-deductible it must go to an organization registered with the IRS.
If you could do what you asked, you could give me a car and deduct it, then next year I could give the car back to you and I could deduct it, lather, rinse, repeat.
Originally posted by: Nik
I dunno, but if the value of the vehicle is more than $10,000, they have to pay a percentage of the value of the car in tax to the feds for receiving it.
Originally posted by: bsobel
Originally posted by: Nik
I dunno, but if the value of the vehicle is more than $10,000, they have to pay a percentage of the value of the car in tax to the feds for receiving it.
Gift tax is on the giver, not the receiver...
Originally posted by: bsobel
Originally posted by: Nik
I dunno, but if the value of the vehicle is more than $10,000, they have to pay a percentage of the value of the car in tax to the feds for receiving it.
Gift tax is on the giver, not the receiver...
Originally posted by: HappyPuppy
Originally posted by: bsobel
Originally posted by: Nik
I dunno, but if the value of the vehicle is more than $10,000, they have to pay a percentage of the value of the car in tax to the feds for receiving it.
Gift tax is on the giver, not the receiver...
That doesn't seem to make any sense. The giver has already paid income taxes on that money when they earned it.
Gift tax is paid by the receiver. Personal experience++
That doesn't seem to make any sense. The giver has already paid income taxes on that money when they earned it.
Originally posted by: bsobel
Gift tax is paid by the receiver. Personal experience++
I'm afraid you are incorrect....
Q: Who pays the gift tax?
The donor is generally responsible for paying the gift tax. Under special arrangements the donee may agree to pay the tax instead. Please visit with your tax professional if you are considering this type of arrangement.
Then why were my mother, two aunts, and uncle required to pay tax when my great grandparents gave them all $12k for christmas one year?
Originally posted by: bsobel
Then why were my mother, two aunts, and uncle required to pay tax when my great grandparents gave them all $12k for christmas one year?
They weren't, they probably misunderstood gift taxes or had the worlds worst accountantYour grandparents may have told them they were responsible for any tax (if this was recent, only a tax on 2k of the gift would have applied). Not the usual situation, and if they did it themselves I'm willing to bet they did it wrong.
Bill
Originally posted by: HappyPuppy
Weird. Just the govt. sticking it to us again. I suppose it would only affect wealthier people, though. Most middle class peeps don't have money to just give away.
Nah this was, like, 10 years ago or so.
Originally posted by: treemonkey
I would just do it. They'll probably never know.