Gifted Vehicle Bill of Sale 

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What is a gifted car bill of sale?

A gifted car bill of sale is a legal document that records the transfer of ownership of a vehicle from one person to another as a gift, without any exchange of money. This document serves as proof of the transfer of ownership. The DMV (Department of Motor Vehicles) or other relevant authorities may require registering the vehicle in the name of the new owner. This applies equally to the gifting of both new and used cars.

A gifted car bill of sale typically includes the following information:

• The names and addresses of the giver and the recipient of the vehicle
• The make, model, and year of the vehicle
• The Vehicle Identification Number (VIN)
• The date of the transfer of ownership
• A statement that the vehicle is being given as a gift, without any exchange of money or other consideration
• The signatures of both the giver and the recipient, along with the date of signing

It’s important to note that the requirements for a gifted car bill of sale may vary by state. Therefore we always recommend you check with your local DMV or consult with a legal professional to ensure that you meet all the necessary requirements for transferring ownership of a vehicle as a gift.

Is their a difference between a gifted vehicle bill of sale and a vehicle bill of sale?

Yes, there is a difference between a gifted vehicle bill of sale and a regular vehicle bill of sale.

A regular vehicle bill of sale is a legal document that records the transfer of ownership of a vehicle from one person to another in exchange for money or other consideration. It includes information such as the make, model, year, and VIN of the vehicle, as well as the purchase price, the names and addresses of the buyer and seller, and the date of the sale.

On the other hand, a gifted vehicle bill of sale is a legal document that records the transfer of ownership of a vehicle from one person to another as a gift, without any exchange of money or other consideration. The document includes similar information as a regular vehicle bill of sale as well as the names and addresses of the giver and the recipient of the vehicle, the date of the transfer, and a statement that the vehicle is being given as a gift.

The main difference between the two documents is that a gifted vehicle bill of sale does not include any information about the purchase price or other consideration, since the transfer of ownership is not made in exchange for any money or other assets. It’s important to note that the requirements for a gifted vehicle bill of sale may vary by state, so it’s recommended to check with your local DMV or consult with a legal professional to ensure that you meet all the necessary requirements for transferring ownership of a vehicle as a gift.

Can nominal payment avoid the gift tax on the gifting of a car?

No, nominal payment cannot avoid gift tax for a car or any other gift. The gift tax is a tax on the transfer of property by one individual to another while receiving nothing, or less than full value, in return. In the United States, the Internal Revenue Service (IRS) imposes gift tax on transfers of property that exceed a certain value, which is currently $17,000 per year (as of 2023) per recipient.

If you transfer ownership of a car to someone else as a gift, the fair market value of the car at the time of the transfer is subject to gift tax, regardless of whether any payment is made or how nominal the payment is. If you sell the car for less than its fair market value, the difference between the fair market value and the sales price may be considered a gift, which could also be subject to gift tax.

It’s important to consult with a tax professional to understand the specific gift tax laws and regulations in your country or state, and to ensure that you comply with them if you are giving a car or any other property as a gift.

How to gift a vehicle

To gift a car, follow these steps:

1. Determine the value of the car: The first step in gifting a car is to determine its value. You can do this by getting an appraisal or using a valuation tool online.
2. Obtain the necessary documents: You will need to obtain the vehicle title, registration, and insurance documents, as well as a bill of sale or a gifted vehicle bill of sale (depending on your state’s requirements).
3. Fill out the paperwork: Fill out the necessary paperwork, including the transfer of ownership section on the vehicle title, and the bill of sale or gifted vehicle bill of sale. Make sure to include all the required information and sign the documents.
4. Deliver the documents and car: Deliver the signed documents, along with the car keys, to the recipient of the gift.
5. Notify the DMV: It’s important to notify the DMV of the transfer of ownership as soon as possible, to avoid any potential liability or legal issues. You can usually do this online or in person at the DMV..
6. Consider tax implications: Depending on the value of the car, you may need to consider any potential tax implications of the gift. Consult with a tax professional to understand the specific rules and regulations that apply to your situation.

Overall, gifting a car can be a straightforward process as long as you follow the necessary steps and requirements in your state. And as always, we recommend consulting with a legal or tax professional if you have any questions or concerns.

Where to find free gifted vehicle bill of sale template?

Our “go to” easy and quick online resource for free and detailed information about gifted cars and bills of sale is Legal Templates. Legal Templates walks you through the process of drafting and downloading their PDF/DOC gifted car bill of sale template.

Alternatively, we just found quite a few attorney drafted and/or lawyer approved printable vehicle bill of sale templates on Etsy.

Example of a gifted vehicle bill of sale (including value)

Here’s an example of a gifted car bill of sale including value. This is just an example, and the specific requirements for a gifted car bill of sale may vary by state. It’s always a good idea to check with your local DMV or consult with a legal professional to ensure you meet all the necessary requirements for transferring ownership of a vehicle as a gift and reporting the value for tax purposes.

GIFTED CAR BILL OF SALE

I, [Name of Giver], am the legal owner of the following vehicle:

Make: [Vehicle Make] Model: [Vehicle Model] Year: [Vehicle Year] VIN: [Vehicle Identification Number]

I hereby transfer ownership of the above-described vehicle to [Name of Recipient], as a gift, without any exchange of money or other consideration. The fair market value of the vehicle at the time of the transfer is $[Value of the Car].

I certify that the odometer reading on the vehicle is accurate to the best of my knowledge.

I also certify that the vehicle is free and clear of any liens or encumbrances.

Date of Transfer: [Date of Transfer]

The recipient acknowledges receipt of the vehicle and accepts ownership of it as a gift.

I, [Name of Recipient], certify that I am accepting ownership of the above-described vehicle as a gift, without any exchange of money or other consideration.

Recipient’s Signature: _______________________________ Date: _________________________

Giver’s Signature: _______________________________ Date: _________________________