If you give the money to her instead you and your Wife can each gift her $14,00 without becoming taxable to her, if that is not enough to cover the cost you can each give whatever leftover amount to her daughter, also with no tax consequence, the lady can then pay for the van, paint job and steam cleaner and expense the whole mess off against her taxable income in 2015, a double win. If you give her the whole smear outright you and your Wife can still give up to the maximum value of $14,00 each but it would have to be in her name, not a business name, still no tax to her but no deduction either.
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Today's Featured Article - Madison's County - by Anthony West. Philip Madison has been a good friend of mine for quite some time. He has patiently suffered my incessant chit chat on the subject of tractors for longer than I care to remember, and on many occasions he has put himself out, dropped what ever it was he was doing, to come and lend a hand cranking handles, or loading a find onto a trailer. Although he himself has never actually owned or restored a tractor, he was always enthusiastic and always around helping with other peoples projects.
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