Date posted: May 1, 2008
My husband and I gave our son-in-law a car worth $24,000. Can we deduct this gift?
My husband and I gave our son-in-law a car worth $24,000. Can we deduct this gift?
— Submitted by Laura
No. Gifts you make are not tax deductible. However, the gift is not subject to federal gift tax because of the annual exclusion amount. Each person can give away $12,000 in 2008 without owing any gift tax. Since you and your husband made the gift together, you each can use $12,000 to shield the $24,000 gift from gift tax.
