Thread: Gifting a car

I will be giving my daughter a car that I purchased about 18 months ago. I have put about $4000.00 into it to make it road worthy and to give her an incentive to get her drivers license.

She just passed her drivers exam and I will be signing the car over to her gratis.

My question is this; Can I take a deduction under "charitable contributions" for the fair market value of the vehicle? I know I can not claim it on 2008 taxes as I still have the vehicle in my name and it is 2009.

A follow up question would be if this is indeed an option what are the possible ramifications for my daughter when she files her taxes next year?

I am assuming that the gift is under $12,000 - you must also file form 709.

Check out the IRS website for Instructions and Information. On one of the top 3 page 13 gives specifics. It also, says gifts to heirs is taxable.

Originally Posted by rkms

I am assuming that the gift is under $12,000 - you must also file form 709.

Yes it is a 1996 Chrysler Concorde. I only paid $100.00 for it but had to get allot of work done to it; New engine, transmission, alternator, axle ends, brakes, tires, power drivers seat, etc. Basically rebuilt the darn thing. a little over 4 grand invested but I think the fair market value is only 3500 according to Kelly Blue book.

You can only do blueblook value which is probably less than $100. The money you put into it isn't a factor.

Linda