I am not understanding regarding a gift from my son.

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   Dana Atchley

   New York Tax Lawyer

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   Answered June 14, 2012 11:13. You don't pay any tax. The person giving you the car would pay any gift tax that might be due.
   
   In terms of how much gift tax your son would pay, he would pay tax on the excess over the annual gift tax exclusion amount of $13,000 so yes, he would pay gift tax on $2,000 if the car were worth $15,000.
   
   A quick check on the Kelly Bluebook website suggests, however, that the trade-in value of the car would be only about $13,500 with that mileage (but without a lot of additional options on it). The private sale value ranges from about $13,000 to $15,000 (if the car is in pristine condition).

   My answer does not constitute legal advice and may not be relied upon by anyone for any purpose and does not... moreMy answer does not constitute legal advice and may not be relied upon by anyone for any purpose and does not constitute an attorney/client relationship or an offer to form such a relationship. This disclaimer is intended to be fully compliant with the requirements of Treasury Department Circular 230 and the terms thereof are fully incorporated by reference. If you wish to consult with me please contact me at dwatchley@newyorktaxcounsel or visit my website at www.newyorktaxcounsel.com less

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   Arthur GeffenPro

   Carrollton Tax Lawyer

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   Answered June 14, 2012 11:51. I agree with the prior answer, but will add that the amount of the gift tax is ultimately reflected in a reduction of the unified credit available when the person that made the gift passes away, so unless NY has a gift tax that is payable, your son will not be out of pocket any monies for gift taxes.

   Hope this helps. If you think this post was helpful, please check the asnwer was a good answer tab below. Thanks.... moreHope this helps. If you think this post was helpful, please check the asnwer was a good answer tab below. Thanks. Mr. Geffen is licensed to practice law throughout the state of Texas with an office in Dallas. He is authorized to handle IRS matters throughout the United States and is licensed to practice in US Tax Court as well as The Court of Claims. This answer is provided as a public service and as a general response to a general question, it is not meant, and should not be relied upon as specific legal advice, nor does it create an attorney-client relationship. less

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   Paul NidichPro

   Cincinnati Tax Lawyer

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   Answered June 15, 2012 11:44. I agree with the first two answers.
   
   Gift tax, if any, is the responsibility of the person making the gift. There is a $13,000 "tax free" limit, $26,000 if the "giftor" is married and the spouse joins in the gift. If the $13,000/$26,000 limit is exceeded, the person giving the gift is required to file a gift tax return, Form 709. However, no actual gift tax is due, unless the giftor's total gifts exceed $5,000,000 (with some other considerations). As you can see, the actual gift tax that might be due is not relevant to the great majority of people in the USA.

   Disclaimer: Please note that this answer does not constitute legal advice, and should not be relied on, since each... moreDisclaimer: Please note that this answer does not constitute legal advice, and should not be relied on, since each state has different laws, each situation is fact specific, and it is impossible to evaluate a legal problem without a comprehensive consultation and review of all the facts and documents at issue. This answer does not create an attorney-client relationship. Do NOT rely on anything I have written here -- You should contact a lawyer in your area immediately after reading my posting. The following disclosure is required pursuant to IRS Circular 230: unless otherwise expressly indicated, any federal tax advice contained in this communication, including attachments and enclosures, is not intended or written to be used, and may not be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any tax-related matters addressed herein. less

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