If you are in the process of gifting your car or completing a vehicle donation to a private party, then Texas will require you to fill out an Affidavit of Motor Vehicle Gift Transfer. The state defines a gift vehicle as the transfer of cars between eligible parties for no consideration. In other words, there is no cash or payment involved.In order to receive a gift tax on the auto donation, you will only be considered eligible if you are one of the parties listed here: parent, stepparent, mother-in-law, father-in-law, guardian, grandchild, grandchild-in-law, child, stepchild, son-in-law, daughter-in-law, sibling, brother-in-law, sister-in-law, grandparent, grandparent-in-law, decedent’s estate, qualified nonprofit IRC section 501 donor, certain revocable living trusts, etc.
If you are donating vehicles, you will need to enter personal information, such as your full name, mailing address, city and daytime phone number. For multiple donors, you will need to add pertinent information about the other person. The recipient is also required to include his or her personal information, such as a mailing address, daytime phone number and ZIP code. Both the donor and recipient must sign the Affidavit of Motor Vehicle Gift Transfer to have it processed without any delay.
To submit the application, either the donor or the recipient must visit a tax county collector’s office nearby with the proper documentation in hand. You will need to present a valid photo ID, such as your current TX drivers license or ID card, to an official agent. Keep in mind that the application must also be signed in front of a notary public of Texas.