can you donate a car to a person

[SanIris]

Yes, you can donate a car to a person, but it’s not as simple as just handing over the keys. The process is treated as a private sale by the Department of Motor Vehicles (DMV) and the Internal Revenue Service (IRS), which means you must handle the paperwork correctly to avoid future liability. You won't be eligible for a tax deduction as you would when donating to a qualified charity.

The most critical step is properly transferring the title. You must completely fill out the title certificate with the sale price. Since it's a gift, you can write "Gift" or "$0" as the sale amount, but check your state's specific rules. Both you (the seller) and the recipient (the buyer) must sign the title. You should also complete a bill of sale stating the vehicle is a gift; this document serves as a receipt for both parties. Finally, file a vehicle release of liability form with your state DMV. This form officially notifies the DMV that you are no longer the owner, protecting you from parking tickets or traffic violations incurred by the new owner after the transfer date.

Step	Action	Why It's Important
1. Title Transfer	Sign over the certificate of title to the recipient, noting the sale price as "Gift."	Legally transfers ownership. Without this, the car remains in your name.
2. Bill of Sale	Create a document stating the car is a gift, including Vehicle Identification Number (VIN), date, and both signatures.	Provides proof of the transaction for both parties and the DMV.
3. Release of Liability	Submit this form to your state's DMV immediately after the transfer.	Severs your legal responsibility for the vehicle.
4. Remove License Plates	Keep your license plates and cancel your insurance.	Prevents misuse and stops your insurance policy.
5. Inform the IRS	Understand that this gift is not a tax-deductible charitable donation.	Avoids issues during tax filing; only donations to 501(c)(3) organizations are deductible.

Ensure the recipient understands they are responsible for registering the car in their name, paying sales tax (which may be waived or reduced for a gift, depending on the state), and obtaining new insurance. Proper documentation is the key to a smooth and trouble-free gift.

[DelElla]

I gave my old sedan to my nephew last year. The main thing is the title. We went to the DMV website, downloaded a bill of sale form, and wrote "GIFT" in the price section. We both signed it, and I mailed a release of liability form the same day. It was pretty straightforward. The peace of mind knowing I'm not responsible for the car anymore was worth the little bit of paperwork. Just make sure you don't skip that step.

[SanAmir]

Forget the tax break; you're doing a nice thing for someone. The government sees this as a sale, even for $0. Your absolute priority is filing a release of liability with the DMV. Do it online right after you hand over the keys. This document is your legal shield. If the person you gave the car to never registers it and gets a bunch of tickets, you're on the hook without that form. The recipient handles registration and tax on their end.

[VonLaila]

Think of it less as a donation and more as a private sale with a price of zero. The core mechanics are identical. The recipient will likely have to pay some fees to the state to register it, often based on the car's assessed value, not your gift price. The key is to treat the transaction with the same seriousness as selling to a stranger. Complete every line on the title, create a bill of sale for your records, and file that release of liability immediately. This formal approach protects your friendship as much as it protects you legally.

[JuneRose]

The short answer is yes, but it requires discipline. The emotional part is easy—you're helping someone out. The administrative part is where people get into trouble. You must detach emotionally and handle the bureaucracy coldly and correctly. Sign the title, create a bill of sale, and file the release of liability the instant the car is no longer in your possession. Do not assume the other person will handle everything. Protecting yourself from future liability is the most important aspect of this generous act.