Can I Sell My Car to My Daughter for One Dollar? Read on to learn about gifting a car, any associated fees, and how to transfer a car title in Texas., If you're purchasing a car with the intention to gift it, you must first, as if you're buying it for yourself. JP Logistics recommends that before you gift a car, you should consider the recipient's needs and wants. Payment for other fees and taxes. Here's what you need to know. Unlike his equally geeky friends, Leonard is interested . . In some circumstances, you might have to finance your loan in order to have the lien removed. The following table gives an idea of how expenses may add up: $1,869 (liability only) Both you and the recipient of the gifted car need to fill out the Assignment of Title section of the vehicles ownership title. Save my name, email, and website in this browser for the next time I comment. Therefore, a car valued at twice the annual exclusion escapes gift tax if given to two recipients, such as a . The tax applies whether or not the donor intends the transfer to be a gift. Purchase price of the car. In many instances, taxpayers are incorrectly informed by licensing agents that a minimal . The car's recipient may still have to pay taxes based on the gifted vehicle's market value. Contact your DMV for their specific requirements. Along with the completed title application, odometer statement, and signed title you and the recipient of the gifted car will need to fill out and sign an Affidavit of Motor Vehicle Gift Transfer. Step 1: Purchase a Vehicle. When it goes down this way, check with your state's DMV; the procedure in which you must change vehicle ownership varies by state. Your car's recipient will eventually have to pay a fee to have the car smogged. What to Buy: Hyundai Tucson or Hyundai Santa Fe? They might not like the car or might be offended by a hand-me-down gift. 152.0412, Standard Presumptive This document helps to protect you from being financially responsible for the car once youve gifted it to someone else. You are exempt from paying sales tax on a vehicle transferred from any of the following family members: The family member transferring the vehicle must complete a sales tax exemption form (MVU-26).