How to Give a Car as a Gift | Edmunds

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How to Give a Car as a Gift | Edmunds

Here is a quick list of dos and don'ts to help you plan the purchase and maintain the element of surprise.

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KZE

My parents want to gift me a new car. They are purchasing and registering it in Montana, a sales tax free state. In order to keep the new car warranty, they have to put my name on the title and bill of sale. I live in Florida which has sales tax. They are goin to give me the car after driving it for 3 months. Can they still gift it to me and the car be tax exempt when I eventually register it in Florida? Do they gift it to my wife since I am on the bill of sale and title? How does this work?

kyfdx

KZE said:

My parents want to gift me a new car. They are purchasing and registering it in Montana, a sales tax free state. In order to keep the new car warranty, they have to put my name on the title and bill of sale. I live in Florida which has sales tax. They are goin to give me the car after driving it for 3 months. Can they still gift it to me and the car be tax exempt when I eventually register it in Florida? Do they gift it to my wife since I am on the bill of sale and title? How does this work?

If your name is on the title and bill of sale, then they can't "gift you" the vehicle, as you will already be the owner.

When you register the car in Florida, as a current resident, I'm pretty sure they are going to charge you sales tax on the vehicle. I don't think there is an explanation you could provide that would exempt you from it.