I am thinking about selling my car to my son in law but have questions on how to do it. If I could then I was just give it to him for free, but I believe there would be gift tax that I would need to pay. Can I sell my car for $1 to him so that no taxes will need to be charged?

Thanks in advanced!
Tim

As long as the value of the car is less than $12,000 you'll be fine. But if the value is over that you can't charge your son-in-law $1.00 and get by without paying a gift tax. The IRS states:
"The gift tax applies to the transfer by gift of any property. You make a gift if you give property (including money), or the use of or income from property, without expecting to receive something of at least equal value in return. If you sell something at less than its full value or if you make an interest-free or reduced interest loan, you may be making a gift.

More information can be found on the IRS.gov site under Gift Tax

According to my understanding
as G85 also pointed out, if its considered a small car then it is exempt from CGT.

Although, otherwise no matter how much you charge him, the tax deptt will considdr the fair value / mkt value of the car currently. As you'd be selling it to a 'connected party'.

The only way around it I can figure is
to sell it to one of your friends to whom the connection may not be easily traced. AND then your son in law buys it from him.

But if this chokes your ethics,
forget it.

Pin~Jinx / anarchist