So my little sister is needing a car. If I were to go out and buy her a used car, is there any way for me to use this as a tax writeoff? I’d pay cash, and the title to the car would be in her name. I doubt it, but it can’t hurt to ask. Thank ya
Who said that!
Questions with factual answers belong in General Questions. I’ll move this for you.
Cajun Man
for the SDMB
Next week’s topic: Creative Bumps and You
If your sister is a 501c it’s ok to take it off your taxes. Or if the cost of the car is over 50% of her upkeep for the year you might be able to make a case for it.
First of all, I’m not a lawyer or tax accountant. But: AFAIK, a gift to another person who’s not (as mentioned in previous post) a qualifying charity is not deductible. Even if she is your dependent – and there is a specific definition of this status – then you can list her as such, but a specific gift doesn’t give you any extra deduction.
OTOH, if you give her more than a specific amount, which I think may be $20,000, then you have to pay and additional gift tax.
Again, I’m not a professional in these matters, so don’t take this as final. This is based solely on personal experience.