Get Car Gift Letter Family Member Maine

To gift a car to someone in Maine, simply list $0 as the sales price and transfer the title. Here are the steps in detail. , you'll need to transfer the title as if it's a private sale with $0 listed as the sales price. The gift recipient will need to pay 5.5% sales tax on the vehicle's market value.

Gifted/Donated Vehicles The process of gifting or donating your vehicle is largely the same as passing it to a family member. You will complete the process much like transferring a title through private sales. Except, you'll write in the sale price of the vehicle as “$0”. This process takes place at the BMV.

The gift letter should describe the vehicle that is being gifted. Example: “I, (your name), gift to my friend, (friend's name), the following vehicle: Year, Make, Model and VIN.” The gift letter will need to be notarized, since your friend is not considered immediate family per the R.I. Division of Taxation.

The application must be completed, signed by the owner, and mailed with the appropriate fee to the Title Unit in Augusta or taken to a branch office location. The previous title or certificate of origin must accompany the application.

Complete the Affidavit of Gift of Motor Vehicles form if the vehicle is a gift; A completed and signed Application for Registration (TR-1) form; A completed and signed Sales Tax Form (T-334-2) form OR Sales or Use Tax Exemption Certificate(T-333-1) form; A completed and signed Sole Heir Affidavit form.

In short, yes. But while selling a car for $1 will allow you to avoid capital gains and gifts taxes, the recipient of the car will have to pay whatever rate of sales tax your state charges on used vehicles when they transfer the title.

If you want to gift a car, here are some things you should know: You need to own the car outright to give someone else legal ownership. If you're still paying for the car, you won't be able to transfer the title to your giftee. ... You'll want a bill of sale for the giftee to sign. ... Make sure it's covered.

As you're filling out the title, you should list your name as the seller and your relative's name as the buyer. You'll also need to state the odometer reading. You should list the price of the car as gift. Don't forget to sign and date the title.