Buying in-laws leased car

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1

Hi All,

My in-laws have a Hyundai Santa Fe SEL 2021. Their lease is about to end in 3 months. I’m looking to buy the car. The car has mileage of 22,500. The buyout price is $22,000. I called Hyundai Financing and they said that I need to deal with the dealer in order to do the buyout. My inlaws and myself reside in NJ. I have couple of questions

  1. In order to pay double tax should I add myself to the lease and do the buyout?
  2. I was thinking to pay my in-laws for the buyout and than they can sell the car for $1 to me. I understand in this scenario I am paying double tax
  3. What is the best way to avoid double tax in state of NJ?

Thanks,

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2

Your in-laws can gift it to their child (your spouse)?

3

You cant add yourself to the lease.

No tax is due of the vehicle is gifted. Of course, if you give them money for the vehicle and then they “gift” it to you, that’d be tax fraud.

4

Thanks for the clarification. I definitely don’t want to do a tax fraud.