Question

Should I gift my car to my fiance?

Forum|Forum|1 year ago
August 30, 2024
2 replies
0 views

TurboTax Free Edition Online

Employee

That does not appear to be a tax question. Unless you use your car in a business that you own, giving the car to your fiancé is not going to affect your income tax or your fiancé's income tax. The tag below your question indicates that you are using TurboTax Free Edition, so I assume that you do not own a business. A gift is not income to the recipient, so your fiancé would not have to report the gift.

If the car is worth more than $!8,000 (for 2024) you would have to file a gift tax return (Form 709), but you would not have to pay any gift tax unless the total of all the gifts you have given in your lifetime is more than $13.6 million. You cannot file a gift tax return with TurboTax.

Is there some other reason that you think there would be tax considerations in giving your car to your fiancé?

X

xmasbaby0

Employee

Gifts given to family members, friends or other individuals are not deductible. Gifts received are not taxable to the person who received the gift, and are not entered on a tax return.

If your gift exceeds the yearly limit ($17,000 per individual) imposed by the gift tax rules, then you will need to complete a Form 709 gift tax form and send it to the IRS, although it is very unlikely that you will owe any tax. In 2024 that yearly limit will increase to $18,000.

TurboTax does not support Form 709. It is not an income tax form and would not be included as part of an income tax return.

Here is a link to the form:

https://www.irs.gov/pub/irs-pdf/f709.pdf

https://turbotax.intuit.com/tax-tips/estates/the-gift-tax-made-simple/L5tGWVC8N

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

O

Opus 17

Employee

The tax implications are:

1. If the value is more than $17,000, the gift must be reported on form 709, although no gift tax is owed by either the giver or the recipient.

2. If the car is a business asset (owned by a business, or used by you for part-time business like ride share), the business must properly dispose of the car as an asset. You also must give the recipient information about the prior business use (depreciation and cost basis) because that will affect the new owner's tax situation if they sell the car. (Selling a used car that was previously used in business sometimes results in taxable income to the seller.)

The rest is just a personal decision.