06/22/2026
🚗 Transferring a Vehicle from a Business to Personal Ownership?
A common misconception is that a vehicle can be transferred from a business entity to an individual without triggering Massachusetts sales tax. In reality, vehicle transfers are generally presumed taxable unless a specific exemption applies.
Some key points to know:
✔️ The vehicle must typically be transferred to an owner of the business, not simply an employee or officer.
✔️ The business must have previously paid Massachusetts sales or use tax on the vehicle.
✔️ The transfer is generally associated with a qualifying event, such as a complete business dissolution or liquidation.
✔️ Timing matters. Certain exemptions require the transfer to occur within 90 days of the qualifying event.
Because every situation is different, proper documentation is critical when claiming an exemption.
We’ve seen business owners surprised by unexpected tax consequences when transferring vehicles out of a corporation or LLC. A quick review before heading to the RMV can save time, money, and frustration.
📞 Have questions about titling, registration, or insurance when transferring a vehicle? We’re always happy to point clients in the right direction. 978-594-0815
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