Giving Truck, Getting Tax
What does Uncle Sam say to Joel as far as him wanting to give away his truck?
QUESTION: Joel wants to know if there are any tax implications involved with giving away his truck. As long as it falls beneath a certain value, he should be fine, as Dave explains.
ANSWER: As long as the truck is worth less than $12,000, there are no tax implications on it. If the market value is greater than that, you could get into some gift tax. But you shouldn’t have major tax implications. In most states, when the person who is getting the truck actually receives it, they will have to record the title and they will usually have some kind of tax associated with that. But you don’t get any tax break for giving your truck away, unless you give it to a non-profit organization.