Will I get penalized if I gifted a $5,000 car to my son?

The fair market value of the car. If $9,000.00 then you are penalized $9,000.00 and Medicaid will not become effective until the penalty is paid ie you paying for $9,000.00 out of pocket. Check with Medicaid. They will look at your financial records for the past five years, any gifts will become additional penalty.

What is the penalty? % of $9,000 value = 1 month nursing home cost?

Yes if this question is related to Medicaid. Solution? Have son give you the car back then just allow him to use it.