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?
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.
One other thought I just had is she could contact the Virginia Lawyer Referral Service and talk to a lawyer. It’s $35 for a 30 minute consultation, and might help her figure out how to make it work.
Ok that’s awesome! Thanks. I don’t know if she’s considered that.
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.
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.
I wish y’all luck!
Thank you 💜
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
Thanks! I know gifting is possible but I’m looking for options similar to the spouse exception for long term, but unmarried, partners to avoid the tax.
It looks like that’s not possible. :/
What's the value of the car?
According to KBB it’s around 2500-2800. 10+ years old, not in great shape, but it is still a daily driver.
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.
Thank you. That’s a piece I was missing and didn’t know, and it will really make her life easier.
Thank you for taking the time and your kindness!!
I don’t think what that person said is valid. Or rather, I don’t think it’s related to sales tax on a vehicle. Pretty sure they are talking about federal level taxes and gifts.
Oh damn. Thanks 😞
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Thanks! I have seen this, I’m just wondering if there are other exceptions for long term, but unmarried, partners in place of the spouse designation for tax purposes.
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