Do I have to pay taxes on a car I received as a gift?

1 Answer

Answer :

If it's in your name Yes you do.-------------------------------------------------------------------------Yes, the gift is income and must be reported on both your Federal and State income taxes (Local income taxes too if you have those), if its value exceeds the gift limit.The value of a new car will definitely exceed this limit and will have to be reported. A used car may not have to be reported, if it is old enough.Check with a tax professional if you have trouble finding the gift limit to check if you must report the gift income on your returns.

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