Dmv and gifting a car

Submitted by ssgonzalez11 t3_11znayc in rva

I’m hoping you all can EILI5. I’m not from here and learning all the ins and outs is hard. I’m trying to help a newly disabled friend gift her car to her unmarried partner. It looks like they can’t do that because they’re not married. What is the cheapest way for her to do that? I’ve been told the old ‘sell it for $1’ option is no longer accepted.

Does she have no choice but to gift it to her or sell it to her and pay the taxes?

0

Comments

You must log in or register to comment.

texascook2007 t1_jdd7l7x wrote

You can still gifted it. I just did this myself. When you go to the DMV you ask for the tax form. I forgot what section you chose but it is under if a parent gifts a car to a kid. I hope this helps

1

augie_wartooth t1_jddfuqa wrote

Can I ask why she is doing this? If it’s for Medicaid purposes, one car is exempt from the asset limit, and I think there is a 5 year lookback period on transferred assets.

Edited for clarity

4

ssgonzalez11 OP t1_jddg3ef wrote

Replying to augie_wartooth (#2,320,097)

I appreciate you asking!

She’s had a brain injury and will likely not be able to drive again. She’s kept the car for about 4 years hoping that her abilities would change but they’ve gotten worse with time. She’d like to gift it to her partner as cheaply as possible.

3

augie_wartooth t1_jddgklc wrote

Replying to ssgonzalez11 (#2,320,112)

Gotcha. I’m sorry to hear what she’s going through. I wonder if she could sell it to her partner for an amount he can get together and then basically just return the money in exchange for something else. I have no idea of legality of this but just a thought.

1

ssgonzalez11 OP t1_jddgwbm wrote

Replying to augie_wartooth (#2,320,145)

Thanks. We have considered that, but it looks like the tax cost would be the same and we think it will be best to just gift it and pay the taxes but I was hoping someone knew the ins and outs better. It’s hard relearning a whole new state and it’s intricacies.

2

Zaboomafubar_ t1_jdej3tz wrote

Replying to ssgonzalez11 (#2,323,800)

Your friend can just gift it. As long as total gifts from one individual to another in 2023 are under $17k there's no tax. Just need to go through the process of transferring the title at the DMV and pay the registration fee.

4