Gift of a Car: How One Dad Saved $1,000 in Taxes for His Kid’s 16th Birthday

Happy 16th birthday! I’m giving you my old car. Thanks, mom. Let’s go transfer the title to my name. Hold on. Now. This car is worth $15,000. And so you’ll have to pay over $1,000 in taxes. What? But I’m a 16 year old kid. Don’t worry, I know a way to avoid the tax. When you go to the DMV, we need to write gift as the purchase price for the title application. Why? Since I’m giving it to a family member and the value is under $18,000, we won’t have to pay any tax. Dad, you’re a genius. They need to teach this in school. Don’t worry, I got you. Click follow if you want to build your wall. Thanks, dad.