2.7T_RT(toofast)

Thread much?

Egil A64.2s - S6

when you give your GF a diamond ring she should count it a a gift and declare it as income.

I think there is some discretionary policy when it comes to gifts.

DasUberAuto

A gift of a diamond ring is just as taxable as a gift of a car, yacht, house, cash, etc.

Who here remembers the case where Oprah gave away cars (or suvs, maybe) to all of her guests on one particular show... and it ended up being a big fiasco because most of her guests couldn't pay the gift tax on the cars, so the guests ended up having to sell them, pay the tax on the car they just sold, and then using the lesser remaining money to buy cheaper cars?

Just because people pretend there is "discretion" on whether they include a gift in their return doesn't mean the discretion is legal.

On the other hand, if you're giving your gf a diamond ring, you'd better be planning to marry her! In which case it wouldn't matter any more...

DasUberAuto

Gifts operate on the same principle. It doesn't matter if the gift is to your girlfriend or to a stranger on the street, that type of relationship is irrelevant as far as tax law is concerned.<ul><li><a href="http://money.cnn.com/2004/09/22/news/newsmakers/oprah_car_tax/index.htm">Clicky</a></li></ul>

paulroad

person can give 12,000.00 in cash or value to another as a gift and its non taxable.
(This has nothing to do with Oprah as its considered prize winnings like any game show.)

So he can gift the car to his gf. The SALES TAX for registration can be based on the 1.00. If she is so inclined to report it as income (why would she?) Then she can show 12,000.00 of value as a legal gift and have no income tax liability on that. If the car has a value of 15K then she would have a tax liability based on the 3000.00.

DasUberAuto

I thought the gift tax exclusion would be too technical for a car forum, so I omitted it for the sake of simplicity.

But you are correct. Any more in-depth and I'll have to start billing out

jbchinoca

when it was still worth about 4k, even though I paid her about $1500 she needed for a down on another car. No questions asked.

jbchinoca

Been here a few times myself. AAA in CA have never questioned me.

Gerry

on fair market value without a flinch. I don't think they spend much time thinking about low values and I'm sure time, place and luck enter into it.

jbchinoca

or I simply stated that the car was inoperative, which they never called me to task on. That, and my incredibly honest face. :-). Depends a bit on the car I guess. Not many people know or hold too high an opion of Saab or Audi to start with. I suspect that if I said my Gallardo was a gift all sorts of bells would go off.