Donate a Car to Charity - Get Your Ducks in a Row
Many people want to donate a car to charity but have questions before they take the plunge. Hopefully, this information will help you take this beneficial step. Most people considering this type of donation have an old car that they do not use anymore. Some need to get rid of it due to a variety of problems. Still others want a newer car, but don't want to go through the hassle of trading it or selling it on their own. That is where car donation becomes a viable option.
The process to donate a car to charity is relatively simple. Locate a charity in your community that accepts cars as donations. Contact them and tell them you want to donate your car. They will take some basic information and then come get the automobile. You will get a receipt for the car to use for a tax write-off on your next tax return. While the process is simple on the surface, there are a few things to keep in mind. Non-cash donations trigger IRS attention quite often. This means you will need good proof of the donation. Without this information, the IRS may decline the deduction and you get to pay penalties as well as the tax.
To document when you donate a car to charity, the first step is taking pictures. Right before they pick up the car, get photographs from different angles both inside and outside. You want proof of what the car looked like before you gave it to the charity. Make copies of all documentation you have on the car prior to the pick-up as well. This includes receipts for recent repairs as well as the title and registration information. When the charity gets the car, you need to make sure you have a receipt before they take it away. Without a receipt, you have no deduction to claim. The receipt should show things such as identifying information on the car, who picked the car up, and when it happened.
Within a month of when you donate a car to charity, the organization should contact you with the final sales price. You can claim that amount on your taxes. If you don't get this information, call them to get it. When you go to file your taxes, you will need to fill out form 8283 if the car is worth more than $500. You can use a car appraiser's estimate or the Kelly Blue Book value.
