Gift transfer — Michigan

Michigan Yacht bill of sale for gift transfer

Complete your Michigan yacht bill of sale for a gift transfer transaction. Enter buyer and seller details, vehicle information, and generate a signed PDF in minutes.

MichiganYachtGift transfer

BillOfSaleNow Legal Team

Reviewed against state DMV requirementsLast reviewed: March 20266 min readEditorial policy

What to know about gift transfer sales in Michigan

If the vehicle's fair market value exceeds the annual gift tax exclusion ($18,000 for 2024 per IRS), the donor must file IRS Form 709 (United States Gift and Generation-Skipping Transfer Tax Return). The lifetime exemption ($13.61 million in 2024) typically means no tax is owed, but the form is still required. Some states require the word "gift" on the title or a separate gift affidavit to waive use tax.

What to include in your bill of sale

Full legal names and addresses for both buyer and seller.
Yacht make, model, year, VIN, and current mileage.
Agreed sale price, payment method, and transaction date.
Any gift transfer-specific disclosures required in Michigan.

Seller guidance

Buyer guidance

You will likely owe use tax on the fair market value of the vehicle at registration unless your state exempts immediate family gifts. California, for example, exempts transfers between parents, children, spouses, and domestic partners. Check your state DMV for exemption eligibility.

Michigan-Specific Note

Michigan exempts immediate family gift transfers from the 6% use tax. Eligible family: spouse, parent, child, sibling, grandparent, grandchild. Complete TR-11 (Vehicle/Watercraft Transfer Between Family Members) and RD-108 (Application for Michigan Title). Both donor and recipient must sign the TR-11.

Legal considerations

Michigan Legal Requirements

Under federal law, gifts of vehicles exceeding $18,000 in fair market value (2024 annual exclusion) require the donor to file IRS Form 709, though the $13.61 million lifetime exemption means actual gift tax is rarely owed. Most states do not impose a separate state gift tax, but many require a gift affidavit or notation on the title to waive sales or use tax. Check your state DMV for the specific form and eligible family relationships that qualify for the tax exemption.

Source: IRC § 2503(b); IRS Form 709

Michigan Yacht transfer fees and requirements

In Michigan, the title transfer fee is $15 and registration costs Based on vehicle list price; varies widely. Yacht sales are subject to 6% use tax on purchase price. Michigan does not require notarization for private-party yacht transfers. Michigan does not require emission testing for private-party yacht sales.

Secretary of State handles title and registration
Title transfer must be completed within 15 days
Plate transfer allowed between vehicles owned by same person

Michigan sales tax on yacht purchases

Michigan has a 6% state sales tax rate. Flat 6% use tax statewide. Private-party yacht sales in Michigan are subject to sales tax. Use tax applies to private party vehicle purchases. The title transfer fee is $15.

Yacht market data and safety information

The most common yacht makes in private-party sales are Sea Ray, Beneteau, Boston Whaler, Grady-White, Viking. Average private-party yacht prices range from $50,000–$500,000+. Yachts average 1 NHTSA recalls per model across categories including Fuel System, Electrical, Engine.

Safety checkpoints for buying a used yacht

Before completing a yacht bill of sale in Michigan, verify these safety items:

Require a professional marine survey before purchase — standard practice for vessels over 26 ft
Inspect engine hours, service records, and oil analysis reports
Check hull condition with moisture meter and visual inspection below waterline
Verify USCG documentation or state registration status

Yacht insurance and depreciation in Michigan

Yacht insurance is 1–2% of hull value annually. Agreed-value policies are standard. Navigation limits and crew requirements affect premiums. Yachts depreciate 10–15% per year for the first 5 years. Well-maintained vessels from premium builders hold value best. Peak season for private yacht sales is fall/winter boat shows drive buyer interest for spring delivery, with an average of 90 days on market.

Yacht registration and titling

Yachts are classified as "USCG-documented vessel (over 5 net tons) or state-registered vessel" for registration purposes. Yachts are classified by length overall (LOA), not weight. Vessels over 65 ft may require a licensed captain. Federal odometer disclosure does not apply to yachts.

Michigan requirements for gift transfer yacht sales

For yacht gift transfer transactions in Michigan, the buyer must pay 6% use tax on purchase price and a $15 title transfer fee. Notarization is not required. Odometer disclosure is required.

Secretary of State handles title and registration
Title transfer must be completed within 15 days
Plate transfer allowed between vehicles owned by same person

Safety tips for gift transfer yacht transactions

When completing a gift transfer yacht sale in Michigan, always verify the vehicle against NHTSA recall databases. The most common yacht recall categories are Fuel System, Electrical, Engine. Check recalls at NHTSA.gov/recalls before signing the bill of sale.

Checklist for gift transfer yacht sale in Michigan

Establish fair market value (Kelley Blue Book or comparable)
Determine if IRS Form 709 filing is required (value >$18,000 in 2024)
Obtain state-specific gift affidavit or complete the gift section on the title
Confirm state sales/use tax exemption eligibility for family gifts
Notarize the bill of sale or gift affidavit if your state requires it
Complete TR-11 (Vehicle/Watercraft Transfer Between Family Members)
Submit RD-108 (Application for Michigan Title)
Both parties sign TR-11 and present at Secretary of State office

Need the printable workflow?

Use the main Michigan yacht bill of sale flow when you are ready to generate the completed document.

Open Michigan Yacht bill of sale

The Private Vehicle Sale Market

17.5M private sales/yr

About 17.5 million private-party vehicle transactions happen in the U.S. each year — roughly 47% of the used market.

Source: Cox Automotive 2024

Frequently asked questions

When should I use the gift transfer page?

Use this page when your yacht sale in Michigan fits a gift transfer scenario. It walks you through the specific disclosures and details that apply to this type of transaction.

Why does the gift transfer scenario have its own page?

Different sale scenarios — such as private party, dealer, or gifted transfers — have different documentation requirements. This page focuses on what buyers and sellers need for a gift transfer transaction specifically.

What should be included in this bill of sale?

Include the buyer and seller details, vehicle identifiers, sale price, date, signatures, and any notes specific to the gift transfer transaction.

What are the Michigan fees for a gift transfer yacht transfer?

Michigan charges a $15 title transfer fee. Registration costs Based on vehicle list price; varies widely. Sales tax: 6% use tax on purchase price. Notarization is not required for most transfers.

What yacht makes are most commonly sold in Michigan?

The most popular yacht makes in private-party sales are Sea Ray, Beneteau, Boston Whaler, Grady-White, Viking. Average private-party prices range from $50,000–$500,000+.

Do I pay sales tax on a gift transfer yacht sale in Michigan?

Michigan has a 6% state sales tax rate. Use tax applies to private party vehicle purchases

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