Free Gifted Car Bill of Sale Template

A bill of sale for a gifted car records the transfer of ownership when someone gives a vehicle to another person with no payment. Even though money does not change hands, the DMV may still ask for written proof that the transfer was a gift.

A clear bill of sale can also protect the giver by showing they no longer own the vehicle. In addition, it helps the recipient complete title and registration steps with fewer questions.

What Are the IRS Rules for Gifting a Car?

The IRS does not require a bill of sale to gift a car, but a paper trail can help show the vehicle was gifted, not sold. For 2025 and 2026, the annual gift tax exclusion is $19,000 per recipient, and gifts above that amount may require the giver to file a gift tax return. See the IRS guidance on annual gift exclusions and reporting rules.

If a gift exceeds the annual exclusion, the giver generally files IRS Form 709. Filing does not automatically mean they will owe gift tax, because many gifts count towards a higherapply to a greater lifetime exemption instead.

A gifted car bill of sale should be simple, specific, and easy for the DMV to review. Here’s how to put one together.

Step 1 – Confirm You Can Transfer the Vehicle

Make sure you have the title and that there is no active lien. If a lender still has an interest in the vehicle, you may need a payoff and lien release before you can obtain the title and complete the gift.

Step 2 – Check Your State’s DMV Requirements

States handle gifted vehicles differently, so it helps to check the rules before you sign anything. For example, North Carolina has a highway use tax exemption for certain family gifts under G.S. 105-187.6.

California often requires extra paperwork for gifted transfers, such as a Statement of Facts (REG 256). You can see the DMV’s overview in California title transfer requirements.

Step 3 – Add the Giver and Recipient Information

List each person’s full legal name and address. Some states may also ask for proof of relationship, especially when tax exemptions only apply to certain family transfers.

Step 4 – Describe the Vehicle Clearly

Include details that uniquely identify the vehicle, such as the VIN, year, make, model, and color. If you want a quick VIN lookup reference, you can use NHTSA’s VIN Decoder.

Step 5 – Make It Clear the Vehicle Is a Gift

State that the purchase price is $0 and that the transfer is a gift. Some DMVs also ask for an estimated market value, even when no one is paying, so include it if your state requests it.

Step 6 – Include Odometer Information When Required

Many transfers require an odometer disclosure, although certain vehicles are exempt under federal rules. If you want to confirm exemptions, review 49 CFR § 580.17.

Step 7 – Sign, Then Notarize If Your State Requires It

Both parties should sign and date the bill of sale, then keep copies. If your state requires notarization, or if you want extra verification, you can also use a notary acknowledgment.

Step 8 – Coordinate Insurance Timing

Plan the handoff so there is no gap in coverage. Once ownership changes, the giver’s policy may no longer apply, so the recipient should have insurance ready to go.