@rwaldenjr You can gift a car to a contractor or an employee but the IRS wants in. So be aware of that.
To start with - if your gift is more than $15,000 it's a non-starter. Anything over that amount counts as income to your contractor and they will pay taxes on it. The value of the gift you're giving is the fair market value at the time of transfer.
What you're doing by gifting this is transferring ownership and basis transfers. So the value you are receiving for the vehicle is zero loss, zero gain. There are no advantages or deductions to your company for doing this and the disadvantage is your assets drop by the value you transferred.
As long as the value of the vehicle is below 15K then you just transfer over the title and your contractor will have to take care of whatever transfer or title taxes are required in your area for a vehicle.
Now, IF YOU TAKE SECTION 179 DEPRECIATION for the vehicle prior to gifting it to your contractor you have to recapture that depreciation in order to give the gift. So if you take that depreciation deduction that you want because you bought the car in December then you are required to recapture that depreciation as income.
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