Ask Experts Questions for FREE Help !
Ask
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #1

    Sep 7, 2013, 08:32 AM
    Tax advantage of individual gifts
    Is there any tax advantage of declaring an individual gift? I helped my daughter by paying off a car loan (about $8K). Should I declare this gift is there any advantage to do so?

    I had to take a loan to do so, is there some way to deduct the principal and/or interest as a loss? Or am I just SOL (which is what I suspect)?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Sep 7, 2013, 09:43 AM
    Scott,

    The $8,000 loan payoff is a gift, but it is well below the $13,000 exemption amount, so no gift tax is due.

    There are no other tax advantages other than possibly claiming your daughter as a dependent.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #3

    Sep 7, 2013, 12:03 PM
    That's what I thought. No tax consequence to her and no tax benefit to me. Oh well.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Sep 7, 2013, 01:39 PM
    Sorry I did not have better news.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Individual tax identification number [ 3 Answers ]

If I have a ITIN, can my husband claim me on his taxes

Can I take advantage of tax exemption through treaties twice ? [ 1 Answers ]

As an Egyptian I was in the US from 1997 to 2002 as a research scholar on the F-1 visa (to do my PhD) and took advantage of the tax treaty with Egypt. I am now German, and work in the US as a researcher since one month (for the public sector) under a J-1 visa. Can I take advantage of the...

Any advantage to paying non-resident NY state tax? [ 4 Answers ]

I live in NYC with my mom and just recently secured a job in NYC. I have the option in using my dad's NJ address on my employment records. Is there a huge advantage and savings in doing this, understanding that I will have to pay both NJ state resident income tax and also NY state nonresident...

Donating house to charity. Tax advantage? [ 4 Answers ]

Hi, I own a home in MI and have had it for sale for almost 2 years this summer. I owe over $400K. My realtor wants me to drop the price $100k. I would be taking about a $125K loss. What about donating the home to a charity... could I write the $434K loss off? I have no idea what to do and...

Individual Tax [ 3 Answers ]

Robert attended a management seminar (related to his business) in Orlando for 5 days. The first 4 days were spent attending the seminar and the last day was spent sightseeing. In connection with the trip, Robert was reimbursed $2,000 by his employers business under an accountable reimbursement...

View more questions Search