Accounting/ Tax implication question.

[myricksw]

My father-in-law is purchasing a 24K vehicle for me. My question is, "What is the tax implications of this?" I am no accountant, and my father in law does not have one yet. I am pretty sure the limit on gifts is 10K per person (10K to me and 10K to my wife). He is not married, so his wife can not help in the gift department. What is the best way of purchasing the vehicle in my name. Please help, buying the vehicle tomorrow. Thank You.

[DHK]

Let me start by saying that I'm not a tax expert. So my comments cannot be used as a legal basis.

You are right about the $10k "gifting" rule - but that applies to your FATHER'S taxes, not yours.

The $24k "truck/gift" may be treated as income on your personal tax returns, therefore liable for tax implications yourself. (Obviously, your father may be liable for the difference between the gift rule and the value ~$14k).

One simple idea on how to avoid this is to have your father purchase the vehicle in HIS name. This shouldn't affect your taxes, but your father won't be able to claim the $10k gift tax rule.

Again, consult a tax expert for the best advice.

[myricksw]

He is not wanting to write this off. I just dont want him to do this for me and come April, one of us get screwed by Uncle Sam. Do you think if he just wrote the check to me and I wrote the check to the dealer that he or I would have to pay any extra taxes.