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Bill of Sale for Gifted Car

A Bill of Sale for a Gifted Car is a legal document that records the transfer of ownership (for a car) without monetary exchange.

Updated Sep 06, 2026 ★ 4.9 (29)
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Recipient Relationship To Donor

Some DMV, tax, and gift-affidavit rules vary depending on whether the vehicle is gifted to a family member, spouse, friend, charity, or another recipient.

Use the description that should appear in the gift statement or supporting DMV paperwork.

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Table of Contents

What is a Bill of Sale for Gifted Car?

A Bill of Sale for Gifted Car is a legal document that records the transfer of vehicle ownership from one party to another without any monetary exchange. This document serves as formal proof that the vehicle was given as a gift, which is essential for tax purposes and registration updates. Both the donor and the recipient use this form to establish a clear paper trail, protecting both parties from future liabilities associated with the vehicle. It is typically presented to the local department of motor vehicles to facilitate the transfer of the vehicle title.

Purpose and Common Use Cases

The primary purpose of this document is to establish that no money changed hands during the transfer of the vehicle. This distinction is critical because it directly affects how state and federal tax authorities treat the transaction. Common situations requiring this document include:

  • Family Transfers - Giving a vehicle to a child, sibling, parent, or spouse as a present or support.
  • Charitable Contributions - Donating a functional vehicle to a registered non-profit organization to support their operations.
  • Estate Distribution - Transferring ownership of a vehicle to a designated beneficiary according to estate planning arrangements.

Key Information Included in the Document

Checklist of details commonly addressed in a Bill of Sale for Gifted Car.
A complete Bill of Sale for Gifted Car generally organizes the major details in a clear written format.

To ensure validity and acceptance by state licensing agencies, the document must contain specific details regarding the parties and the vehicle:

  • Donor Information - The full legal name, physical address, and contact details of the person gifting the vehicle.
  • Recipient Information - The full legal name, physical address, and contact details of the person receiving the vehicle.
  • Vehicle Identification Number - The unique 17-character code that identifies the specific vehicle being transferred.
  • Vehicle Details - The exact make, model, year, body style, and color of the vehicle.
  • Odometer Reading - The exact mileage displayed on the dashboard at the time of the physical transfer.
  • Purchase Price Notation - A clear statement indicating the purchase price is zero dollars or that the vehicle is a gift.

Types of Vehicle Gift Transactions

Comparison graphic explaining concepts related to a Bill of Sale for Gifted Car.
Comparing related concepts can make the structure of a Bill of Sale for Gifted Car easier to understand.

Vehicle gifts generally fall into specific categories based on the relationship between the parties and the purpose of the transfer:

  • Intrafamily Gift - A transfer of vehicle ownership between immediate family members, which often qualifies for state sales tax exemptions.
  • Charitable Donation - A transfer of a vehicle to a registered non-profit organization, which may provide tax deduction benefits for the donor.
  • Prizes or Awards - A transfer where a vehicle is gifted as part of a contest, promotional event, or sweepstakes.

Legal and Tax Considerations

Gifting a vehicle involves specific legal and tax rules that differ from standard vehicle sales:

  • Federal Gift Tax Exclusion - Governs the annual monetary limit an individual can gift to another person without triggering a federal gift tax reporting requirement (26 U.S.C. § 2503(b)).
  • State Sales Tax Exemptions - Determines whether the recipient is exempt from paying sales tax on the vehicle's fair market value based on their relationship to the donor.
  • Affidavit of Gift - Some jurisdictions require a separate notarized affidavit alongside the bill of sale to verify the transfer was a genuine gift.
  • Liability Release - The donor must file a notice of transfer with the state department of motor vehicles to release themselves from future toll, parking, or accident liabilities.

Steps to Complete a Vehicle Gift Transfer

Successfully transferring a gifted vehicle requires completing several sequential administrative steps:

  1. Verify State Eligibility - Research local department of motor vehicles guidelines to confirm if the relationship qualifies for a tax-exempt gift transfer.
  2. Draft the Bill of Sale - Fill out the document completely, ensuring all vehicle details match the current certificate of title.
  3. Record Odometer Mileage - Check the vehicle dashboard and write down the precise mileage on both the bill of sale and the title transfer section.
  4. Execute the Signatures - Both parties must sign and date the document, preferably in front of a notary public if local laws require notarization.

Frequently Asked Questions

A Bill of Sale for Gifted Car is a legal document that records the transfer of vehicle ownership without any monetary exchange. It serves as official proof of the transfer for tax and registration purposes. This document protects both the giver and recipient from future liabilities.
Yes, most state motor vehicle departments require this document even for transfers between family members. It officially documents that no money changed hands, which helps determine tax exemptions or reduced fees. It also establishes the exact date the transfer of ownership occurred.
In many states, immediate family members are exempt from sales tax on gifted vehicles. However, the recipient may still be responsible for registration, title transfer, and local licensing fees. It is recommended to check with your local DMV for specific state tax rules.
Notarization requirements vary by state and local jurisdiction. Some states require a notary public to witness the signatures of both the donor and the recipient to make the document legally binding. Even if not legally mandated, notarizing the document provides an extra layer of legal protection.
A standard bill of sale records a transaction where money is exchanged for a vehicle. In contrast, a gifted car bill of sale explicitly states that the purchase price is zero dollars or that the vehicle is a gift. This distinction is crucial for tax purposes and determining sales tax liability.
Yes, this document can be used to record the transfer of a vehicle to a registered non-profit organization. It provides the necessary paper trail for the donor to claim a tax deduction. Both the donor and the charity representative must sign the document.

Bill of Sale for Gifted Car Sample

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BILL OF SALE FOR GIFTED CAR

This Motor Vehicle Gift Affidavit and Bill of Sale (the "Agreement") is entered into on (the "Effective Date"), by and between the Donor and the Recipient identified below.

I. THE PARTIES

The Donor:
Name:
Address:
Phone:
Email:

The Recipient:
Name:
Address:
Phone:
Email:

II. VEHICLE INFORMATION

The Donor is the legal owner of the following motor vehicle (the "Vehicle"):

Make:
Model:
Year:
Body Type:
Color:
Vehicle Identification Number (VIN):
License Plate Number:
State of Registration:

III. TRANSFER OF OWNERSHIP AND CONSIDERATION

For good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Donor hereby irrevocably gifts, transfers, and assigns all rights, title, and interest in the Vehicle to the Recipient.

The Parties acknowledge and agree that this transfer is a GIFT.

Purchase Price: $0.00
Monetary exchange: None

The estimated fair market value of the Vehicle is: $

IV. RELATIONSHIP OF PARTIES

For the purposes of state sales tax exemptions and title transfer requirements, the relationship between the Donor and the Recipient is:

V. ODOMETER DISCLOSURE

Federal and state laws require that the seller/donor state the mileage upon transfer of ownership. Failure to complete or providing a false statement may result in fines and/or imprisonment.

The Donor states that the odometer reading at the time of transfer is: (no tenths).

The Donor certifies that to the best of their knowledge the odometer reading reflects the actual mileage of the Vehicle unless one of the following is checked:

VI. REPRESENTATIONS AND WARRANTIES

The Donor represents and warrants to the Recipient that:

(a) The Donor has full legal authority to sell and transfer the Vehicle;

(b) The Vehicle is free and clear of all liens, encumbrances, liabilities, and adverse claims, except as follows:

(c) The Donor will execute all documents necessary to transfer the Vehicle title to the Recipient.

VII. CONDITION OF VEHICLE ("AS-IS")

The Recipient acknowledges that the Vehicle is being gifted and accepted in "AS-IS" condition. The Donor makes no other warranties, express or implied, regarding the condition, safety, reliability, or fitness for a particular purpose of the Vehicle. The Recipient accepts full responsibility for any repairs or maintenance required after the Effective Date.

VIII. GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the State of .

IX. ENTIRE AGREEMENT

This Agreement constitutes the entire understanding between the Parties regarding the gift of the Vehicle and supersedes all prior agreements, whether written or oral.

X. SIGNATURES

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above.

DONOR
Signature: _________________________
Print Name: _______________
Date:
Address: _______________

RECIPIENT
Signature: _________________________
Print Name: _______________
Date:
Address: _______________

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