Do I Need a Bill of Sale?

The first determining factor as to whether a bill of sale is necessary for your situation is the value of the item you will be selling or buying. If the piece of property being exchanged is worth a large sum of money, it is a secure investment to take the time to complete a bill of sale form to provide for both individuals once the transaction has culminated. If the property being purchased is for a value of less than $100, it may not be required but can still be prepared and executed for peace of mind, should you choose to record the event.

When to Incorporate a Bill of Sale Into the Transaction

When selling an expensive personal property, it is wise to supply some documentation to provide proof of the transfer. Employing the use of a bill of sale can be beneficial for both the buyer and seller. The seller will be protected from liability issues associated with the property’s potential use or operation after the ownership transfer. The buyer can also feel secure knowing an executed Bill of Sale will supply proof of ownership should it ever come into question. Remember that many high-dollar purchases, such as a motorized vehicle, boat, aircraft, trailer, or farm equipment, may require a bill of sale when transferring the title or registering in most states. Contact your local government agency to inquire if you know the state laws affecting the sale, which is always a good idea. Lastly, a Bill of Sale will also equip both parties involved with sufficient documentation to utilize for taxation purposes should you or your accountant choose to evaluate the purchase come tax time.

Personal Bill of Sale Form