Minimize tax on personal car sale?

I doubt it because he still has to register it and there would be a value which creates a basis.

not sure about the act of donation. you could say you are selling it for $700 or so because it needs some cosmetic work or similar.

There are a few things happening here.

If you donate the car to someone, there is no sales tax, because there is no sale. However, the registration costs and renewals will be based on the actual fair market value of the vehicle, which will need to be provided.

But you have a bigger problem, and that is, you can't donate a vehicle from an employer to an employee. The assumption is going to be that the vehicle was transferred as part of his employment, and the FMV is going to be income to him, and both of you are going to owe payroll taxes. Now, you do get a deduction just like any other salary / payroll tax expense.

Any used vehicle sale can minimize the tax by selling it for $50 or $100. I once sold a used Honda for $ 2K , but in reality, I sold the car for $50 and the key for $1950. Wink Wink. It ain't rocket surgery.