How to Give a Car as a Gift

1.

Use the yellow pages or the internet to look up the contact information to a DMV office in your state.

2.

Call your DMV office and ask if your state requires a gift form when giving a car to someone else. This form is very important, because it keeps the recipient of the car from having to pay sales tax on the car, like they would if they were to pay any amount of money for the car. If it is required, fill out the form and give it to the car's new owner to take with them when they get the car registered under their name.

3.

If your state does not require a gift form, all you have to do is write the word "gift" on the price line indicating what the car was sold for on the title of the car or a bill of sale.

4.

Ask the DMV about any other forms that need to be filled out in order for you to receive a tax deduction on your gift of the car. Each state has different rules about this, so it is best to speak to a DMV representative from your state.

5.

Give the car's new owner the car's title, the car itself, and the bill of sale and direct them to visit the DMV office to hand in the paperwork and get the vehicle registered in their name.

Many people give a car as a gift for 16th birthdays, a child moving out of the house, or simply as an act of kindness to someone in need. If you have a car that you are giving away, follow these steps to complete the proper legal paperwork.