You do if the value of what you give him in a single year exceeds your annual exclusion of $15,000 (in 2012). You could give him half of a $30,000 car this year and the other half next year and not owe any gift tax at all.
The receiver of a qualified gift does NOT have pay any federal income tax on the value of the car as a gift. BUT the receiver will have to pay some taxes to the DMV when the car is registered in the new owner name in the state and to get the new license plates, etc.
Yes. If they buy the car then gift it to you, then they will have to pay upfront, and then can deduct a certain amount. But someone will pay.
You will pay on the value of the new car.
You don't pay the taxes, the person receiving the car as a gift does.
Pay cash.
There is no tax on a car given as a gift in MA.
depends on what car
When you buy a new car you will either pay in cash the full amount or get credit. If you get credit, you will only need to pay a down payment.
Yes- you pay the taxes when you register your car in the state you live in.
yes you do
You pay sales tax to whichever state you buy something from. It this case, it will be NY. However, you will have to pay property tax for your car in NJ because that is where you live.
Well it depends on your budget. If you are willing to pay for a new car and your credit is good enough, then you should probably get a new car instead of a used car.