Car giveaway gift tax?
So I have a weird question. Let’s say you win a free car giveaway and I know you have to pay for taxes for the car. But what if you were to sell that gas car and buy an electric car would that help in any way with taxes? Or would it just make you pay taxes for 2 cars?
If it matters I’m in the state of California
- car253Lv 72 months ago
You would pay sales tax on both cars and registration fees. In California registration fees are sky high. You might get a tax credit for the electric car. And, the cost of insurance is high on electric cars so get some auto insurance quotes before you buy.
- Anonymous2 months ago
You would owe income tax just like if you earned it via a job. And the state might or might not charge you sales tax on the book value when you go to register it.
In fact, you might even have to pay the income tax at the time you get the car. Thats what happens at casinos if you win over a certain amount. (But BEWARE of scammers who tell you that you have to pay upfront to get your prize. In scammers case, there is no prize)
You can often ask for cash instead of a car in giveaways but not always.
I would not buy an electric car.
- RobertLv 72 months ago
If you live in a criminal regime like New York you would end up paying a sales tax on the transactions I believe once you have paid the taxes on the "prize" you would sell it and then buy the electric car in a separate transaction. which would require sales tax and any other fees associated with a new car. You may get a tax credit in some places for buying an electric vehicle.