How does receiving a car as a gift affect taxes?

Being gifted a car can impact taxes like on this Lexus

Giving the gift of a car, truck, or SUV is quite generous. On the other hand, receiving a car as a gift is not as simple as it seems. It varies from state to state, and there are better ways to drive a gifted car or sport utility vehicle. Going to the DMV to transfer the title is the best route, but the price of the car will affect taxes.

What happens if they give you a car?

Getting a car as a gift can be complicated. Farm Bureau Financial Services someone gives you a vehicle, make sure you own it. Otherwise, you would be responsible for repaying a loan. Beyond that, you’ll want to make sure you can afford gift tax on any vehicle you’ve been given as a gift.

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