<prompt> Human: AutoSo some quick background info, my wife and I live in Texas and my dad lives in Utah. He decided to buy us a car because I guess he knew we needed one. We were really grateful and excited at first, but tonight at our family dinner we found out some information that kinda scares us...My mother in law told us that we might have to pay the taxes on the car even though the car is already paid for in full.He payed cash, but I dont know if that makes a difference. I guess I dont completely understand what she said, but the tax on this car would be around 1,200 and while that doesnt seem like much we are super tight on money and cant really afford to even pay that. Is there a way to get around doing this? My mother in law also said he could technically sell us the car for super cheap she said 1.00 jokingly to get around this.Thanks in advance for the help!  <response>: According to this form an out of state transfer into Texas is subject to a 10 gift tax. 