How to Report Donated Vehicles in Tax Forms
Now that you have donated your vehicle to a charitable organization, you want to get credit for the donation on your taxes. However, before you can claim the deduction, you need to know the fair market value (FMV) of the vehicle, whether the organization to which you donated is qualified and if the organization has sold the vehicle.
Other People Are Reading
Things You'll Need
- Donation receipt or acknowledgment from the charity
- Vehicle appraisal
- IRS Form 1040
- IRS Form 1098-C
- IRS Form 8283
- IRS Form 1040, Schedule A
Instructions
-
-
1
Have the vehicle appraised. You will need its fair market value for line 17 of Form 1040, Schedule A. If the amount is over $500, you will need to file Form 8283.
-
2
Confirm the recipient organization is indeed qualified. Examples of qualified charitable organizations include religious organizations, veterans groups, nonprofit schools and other nonprofit organizations. If you still question if an organization is qualified, you can pick up a copy of IRS Publication 78, contact a tax professional or the IRS.
-
-
3
Receive written acknowledgement of the donation from the organization. Form 1098-C is acceptable both to acknowledge receipt of the vehicle and to report the amount if the organization sold the vehicle. If it was sold for less than fair market value, you may only deduct the sale amount listed on Form 1098-C.
-
4
Complete Form 1040, Schedule A, listing the amount of the donated vehicle on line 17. To calculate this figure, take the amount on Form 8283 and compare it to the amount listed on Form 1098-C, line 4A. If the amount on Form 1098-C, line 4A is less then the amount listed on Form 8283, you will use the lesser of the two amounts on line 17 of Schedule A. List the total of your itemized deductions from Schedule A on Form 1040, line 40.
-
5
Attach your W-2's to Form 1040. Include Form 8283 and Schedule A and send to the IRS for processing.
-
1
Tips & Warnings
Make sure the organization is qualified.
Be sure to attach all forms before you send in your taxes.
Resources
- Photo Credit Photo by M Volbert
