My mom received money after her parents past away. She wants to buy a car and has asked if I can have my name on title because she owes irs money. My question is can by me putting my name on car title that cost 26,000 (paid with cash/check ) put my husband and I in a different tax bracket causing us to pay at the end of year or not get as much back we made over 80 k this year. I just don't want me adding my name to affect my family at the end of year.
1 Answer from Attorneys
To answer the question you asked, no, putting the car in your name will not put you in a higher tax bracket. However, some of the questions you didn't ask: will your insurance liability increase if your mother drives a car that is registered in your name. Will IRS be able to identify that you are holding title as nominee for another party and seize the car. If your mother made payment arrangements with IRS, maybe this wouldn't be an issue. How much does she owe IRS and why can't she pay it. How much time is left on the statute of limitations on collection?
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