As of 2024, you can gift up to $18,000 per person without reporting it to the IRS. If the car costs more, you’ll need to file Form 709, though you likely won't owe taxes unless you've hit your lifetime exemption ($13+ million). 4. Insurance (The "Before You Drive" Step) A car cannot legally leave the lot without insurance.
You generally cannot take out a loan for a car that will be titled in someone else's name. If you are financing the gift, you will likely need to be a co-signer or own the loan yourself until it’s paid off.
Many dealers are happy to help with a "reveal." They might provide the giant bow or even deliver the car to the recipient's house for a small fee.
Ensure you have the recipient's full legal name and address for the paperwork. 3. Taxes and the "Gift" Rule