When it comes to safety, are you prepared to buy or sell a used item but unsure of where to begin? You no longer need to worry because there is a document that can outline the specifics of the sale to prevent future misunderstandings between you and the seller or buyer.

A bill of sale can be written by anyone as long as certain conditions are met. In order for it to be legally binding, it must contain specific information. This information is important because it will help you understand how much sales tax you may have to pay.

Certain components should be included in your bill of sale. These are some examples:

Transaction date: Your bill of sale should include the date of sale.
A detailed description of the item being sold: it is crucial you include a detailed description of the item being sold. If you’re selling a car, for example, your bill of sale should include the year, make and model, vehicle identification number, current mileage, and license plate number.
Warranty: In your bill of sale, private party sales are generally considered “as is” or “no warranty” sales. If your agreement includes a warranty, include it in the bill of sale document.
Price of sale: When writing your bill of sale, include the price for which the item is being sold. If your item is a gift or a partial gift, the reduced price can be stated on the bill of sale.
Details about the Parties Involved: The names, addresses, and signatures of the buyer and seller should be included in your bill of sale document. It should also include a signature above the statement acknowledging that, to the best of their knowledge and belief, both parties have provided true and correct information.
Previous Owners: In the case of a private sale of a used property, such as a used car, the bill of sale should name previous owners known to the seller.
The method of payment: The method of payment should be specified in the bill of the sale document (i.e. in installments or in full, cash, check, credit card, or bank deposit)

Source: [https://financesyrup.com/how-to-write-a-bill-of-sale/]