In NJ, if someone buys me a car as a gift, does it qualify for a tax exemption?

Question

In the upcoming weeks, my grandma will be buying me a used car as a gift. The state MVC website states that a car which is a gift is exempt from sales tax, but I don't know if my situation is really considered a gift for tax purposes.

Answer 1

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Answer 2

You may not have to pay sales tax.  But your grand father has to pay for it.  It is only exempt if he give the car he owns (that he paid sales tax already).

Also, depending on the value, you might have to declare the car on your income tax (or your parent's income tax) and declare it as income (of value).

Good Luck...

Answer 3

I would think your grandma will just pay for the car for you, and you would be responsible for transferring ownership and registering it. If she is 'gifting' a car she already owns, then she is transferring the car as a gift to you and you can write 'gift' in the place for price on the transfer papers. see http://www.dmv.org/nj-new-jersey/title-t...

If she's paying for a car for you that you're buying at a dealer, they will handle all that stuff, and build it into the price.

Make sure you have insurance lined up, because otherwise they'll be more than happy to sell you some at the lousiest rate imaginable.

Good luck, drive safe and visit Grandma often and take her shopping and help her out a lot. Will she get me a car too?

Answer 4

My daughter lives in NJ. In March, when my mother, who also lives in NJ, bought a new car, she gave her 98 honda accord to my daughter. When my daughter had the car registered and titled in her name she was exempt from any sales tax. My mother list under amount of sale- gift-.