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01-23-2006, 04:07 PM
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#1 |
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Join Date: Jan 2006
Posts: 2
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Tax Deduction - Gave car as gift
My husband and I had a car with a blown engine. We gave it to a friend to let them try and fix it - they did - which we think is great.
Any chance we can claim a tax deduction? Can we write off the blue book value as a gift? Does the other person need to do anything? The blue book value was $4000. |
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01-23-2006, 08:57 PM
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#2 |
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Registered User
Join Date: Oct 2001
Posts: 1,586
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Jbavas,
Blue Book Value of $4,000 with a blown engine??? It was nice of you to give your friend a gift. We can not take a deduction on our taxes for giving gifts to individuals, only to qualified organizations. And if you had given the car to a qualified organization, and the organization sold the car, the organization must report to you what they received for the car. This is your deduction amount. |
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01-27-2007, 04:54 PM
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#3 |
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Registered User
Join Date: Nov 2006
Posts: 25
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On a related note, I donated a car to a local charity this year and the charity is making use of the car instead of selling it. The blue book was 1200 - 1500. Can I deduct this entire amount? If so is there addition audit risk by doing so?
Thanks. |
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01-28-2007, 02:52 PM
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#4 |
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Registered User
Join Date: Oct 2001
Posts: 1,586
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Publius,
Audit? Maybe. This is a deduction for Schedule A line 16, other than cash or check. The charity should give you a receipt for the value of the car. Because they are using the vehicle, most likely the receipt would be for the BB value. If the Charity sells the car then they will give you a receipt for the amount they receive from the sale. If your non-cash deductions are more than $500, you must complete form 8283, and attach it to your tax return. AND because this is an automobile, you must attach a statement from the charity, to your tax return. Last edited by clydewolf : 01-28-2007 at 03:00 PM. |
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04-28-2008, 06:07 PM
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#5 | |
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Registered User
Join Date: May 2006
Posts: 83
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Quote:
As far as I know you should have donated your card to make it tax deductible. I do not think you can do that by using it as a gift. Up to $5,000 you do not need much documentation to proof the value... I donated my car once ... Thanks |
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11-04-2008, 12:26 PM
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#6 |
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Registered User
Join Date: Nov 2008
Posts: 1
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On a related issue ... if a husband gives his wife a car it is a tax write off correct?
__________________
This year IRS guarantees to accept 100% of all income tax extensions filed. |
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11-04-2008, 01:20 PM
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#7 |
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Registered User
Join Date: Jan 2007
Posts: 1,084
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Uh, no, it's a gift! Gifts are NOT write-offs, not tax deductions, not anything but "here, from the love in my heart".
There may be exceptions, such as that he owns a business, and the business bought her a car because she does work for the business, then the business deducts/expenses-out the car.
__________________
"Wealth is the slave of a wise man. The master of a fool." -- Seneca |
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11-27-2008, 05:07 PM
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#8 |
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Registered User
Join Date: Aug 2008
Posts: 135
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I totally agree with Puck. If you give somebody something then that's considered as a gift and gifts are not included in tax deductions.
"There may be exceptions, such as that he owns a business, and the business bought her a car because she does work for the business, then the business deducts/expenses-out the car." - By Puck.... I second the motion. |
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01-15-2009, 03:36 AM
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#9 |
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Join Date: Jan 2009
Posts: 2
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07-11-2009, 01:27 PM
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#10 |
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Registered User
Join Date: Feb 2009
Posts: 48
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If the gift is valued at more than $12,000, you will need to file a gift tax return. Unless you have given prior gifts during your lifetime that exceed $2,000,000, there will be not gift tax to pay, but the return should be filed.
Your friend will not have any income or gift tax liabilit. U.S. Master Tax Guide, 2009  |
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07-11-2009, 07:04 PM
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#11 |
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Registered User
Join Date: Oct 2001
Posts: 1,586
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Digitsy,
No, a gift tax return for a gift between spouses is not necessary... http://www.irs.gov/businesses/small...08139,00.html#3 |
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