I am acquiring my mother's previous vehicle, a leased 2021 vehicle. Her lease was up and she acquired a new lease (same dealer if it matters).

So, as the lease-holder she is taking the option to buy the vehicle from Honda Finance for the residual cost. Once that transaction is complete and she gets the title, she'll go to the county office to submit the 130-U and pay the sales tax.

Question -

Since I am taking ownership of the car, I provided her the money beforehand to cover the residual and tax.

Can she "gift" me the car (using Form 14-317 Affidavit of Motor Vehicle Gift Transfer)? Or since, in reality I proactively reimbursed her for the residual it is not technically/legally a gift?

Just trying to avoid paying sales tax twice on the same vehicle. If I could have done the transaction directly with Honda to buy the car for residual I would have but that wasn't an option. If I weren't desiring the car, she would have just turned it in.

Would it matter if she just kept the vehicle registered in her name for a while and "gift" it to me later? The vehicle will be on my insurance.

Thanks!

I would give her the money now, let her get the title free and clear in her name.
Then, after that, let her gift you the vehicle.
Maybe when the next registration renewal is due.

Here's the form for those who want to read the fine print.
https://www.txdmv.gov/sites/default/files/form_files/14-317.pdf

OK, yeah that's what's been done. I paid her already and she is in the process now of completing the deal with Honda/Acura. Probably be a few weeks for her to get a title and register it. I did it by a wire transfer (same bank), so assume that amount will flag something with the government. I don't want to pay the tax again but don't want to get her/us in trouble either lol.

Yeah, was thinking of that option of waiting until the registration was due or a calendar year or something.

If your mother "gifts" the car to you - wouldn't you be responsible for taxes again based on market value? Couldn't you have the dealer register the vehicle directly in your name to avoid potentially having to pay the taxes twice?

Nevermind - I see the form shows the "Gift Tax" of $10 is eligible for childern on the form posted above.

Can your mother just have it titled in your name?

You should have no problem doing exactly as you described and you are doing nothing "shady". Good luck

ghollow said:

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Can your mother just have it titled in your name?

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This was what I can't figure out. Pay off the lean and have it titled immediately in your name.

Maybe I am overthinking it.

So Acura won't deal with me on buying out her lease - she has to pay the residual which I've already paid her for. They then send her the title in a few weeks, is it not associated with her in some way at this point? Can we just then register it my name and fill myself out on the Form 130-U? Would I need to go with her (probably will anyway as she is 80 and doesn't like dealing with this kind of stuff on her own). She is in a different county than me if it matters.

Thanks!

they will assign the back of the title to her


after taxes are paid at the county a new title wlll be issued to her via mail, double check her original retail installment contract/lease agreement and see if she already paid some
or all of the sales taxes at the time
of purchase , if so the tax office will give credit towards taxes owed

once title is received then she can sell or give it to you

You're way over thinking this.

Mom pays off vehicle and gets title.
(Make sure lien is released on title)
Mom "gives" you vehicle
You pay $10 gift tax.

This thread is really good timing..

My son turns 16 next week and he is getting his grandfather's old truck. Originally I was going to "buy" this truck from my father in law business as usual.

If what I am reading is correct I should (a) have my father in law gift the truck to my son (b) work out any financials for the truck off line with my father in law (3) pay the $10 gift tax versus paying X percent of the sale price if I was going to sale it business as usual.

Would appreciate it if someone more familiar with this process could verify the above and help save me on taxes.

Thank you very much for any input/confirmation.