Mothers’ Day is just a few days away! If you’re thinking of going big and surprising her with a car, then that’s a great idea! What’s more, you will automatically be crowned as the ‘best gifter’ as there are few gifts as amazing as a sleek, new ride.
Before you proceed, you need to consider a few things as well as adhere to the current rules of gifting a car in the United States. Do note that the rules for gifting vary from one state to another. Check with your local DMV office to stay on the right side of the law and to avoid hiccups while shipping the brand new car to your mother.
Tax issues when gifting a car
Gifting a car is not entirely tax-free! It is important to remember that there is a cap on gifting and if you exceed it, you will have to pay federal gift tax. Currently, any gift bought by an individual that is priced upwards of $15,000 is taxable; however, as we mentioned earlier state laws differ from each other, so it’d be wise to check them up.
It is illegal to drive a car without adequate insurance. Even if you don’t drive the car yourself before shipping it over to your mom, you will want her to take it for a spin once she confirms delivery. Therefore, it makes sense to invest in car insurance as soon as the car becomes your responsibility.
Also, did you know that you can’t legally gift a car if you are making loan payments towards it?. Added to this, you will have to transfer the ownership of the car so that it can be shipped to your mom without a glitch.
After you’re sure that you have all the documents needed to ensure seamless transfer, ship it to your mom as soon as possible with EC Auto Transport. In the summertime, people move into new homes and are more likely to relocate from one state to another. So, it’s a pretty busy time for those working in the shipping industry. If you don’t want to end up on a waiting list, complete the formalities and ship the car immediately. Wondering about whether you should ship or drive? Check out this blog for answers.
You may be far apart from your mom during this very unusual year, But you can still make her smile with a memorable gift! If you are planning on gifting a ride to your mom this Mothers’ Day, do contact us when you decide to ship the car to anywhere in the USA or Canada.