What paperwork do you need?
The only paperwork needed is a signed, clear title. A clear title indicates the title is in the name of the donor without a lien.
To back up your deduction, make sure you have the name and address of the charity, the date of the donation, the place where you donated the car, a description of the car, and a written acknowledgement from the charity.
Keep a copy of the title transfer. Report the transfer to your state motor vehicle department, and cancel your car insurance.
Remove license plates—unless state law says otherwise—as well as registration and inspection stickers as you don’t want the next owner’s problems tailing you.
Will I get a tax receipt for my donation?
Yes, you will receive an IRS Form 1098-C in the event that the sale of the vehicle exceeds $500. If the vehicle does not exceed $500, the thank you letter that you will receive can be used as a tax receipt.
How does the tax deduction work?
You can deduct the value of the vehicle only if you itemize deductions. A receipt indicating the vehicle sales price will be sent to you within a few days after the pickup of your vehicle. Please consult a tax professional for further information.
What can I claim as a deduction?
According to the tax law effective January 1, 2005, if the claimed value of the donated vehicle exceeds $500, the taxpayer is limited to the gross proceeds of the sale. An IRS Form 1098-C, “Contributions of Motor Vehicles, Boats, and Airplanes” will be mailed to you within 30 days of the sale stating the amount of gross proceeds received from your car, provided your vehicle sold for more than $500 and you have submitted your social security number. This will be your tax receipt for your charitable contribution.
How is the value determined on the vehicle donated?
The value is determined by the gross proceeds raised from the sale of the donated vehicle.
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