How can I "sell" my car to a family member?
Asked by
gsiener (
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July 31st, 2007
I'm about to leave the country and would like to transfer ownership of my car to someone else. What does this entail (in MA)?
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5 Answers
You can do an "Act of Donation" and they won't have to pay taxes.
To get a waiver on the sales tax, you need to fill out a sales tax exemption form. You also need to have proof of car insurance. Your insurance agent needs to complete, stamp, and sign an Application for Registration and Title (RMV-1).
Take both forms, along with your signed title (be sure the date sold, odometer reading, and the purchase price have been filled out on the back), to a full-service RMV center. The new owner will be issued a registration and plates and will be mailed a new title.
Source: http://www.mass.gov/rmv/regs/index.htm
Excellent, thanks for the advice. Not to make things more difficult, but what if the new owner is in NY?
Go to a reliable Notary Public who will prepare an Act of Donation. An Act of Donation will prevent the person you are giving the vehicle to from paying taxes on transferring the vehicle. In my state you may only donate to an immediate family member such as a father, daughter or son or brother or sister.
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