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Step 1
Fill out Copy B of Form 1098-C "Contributions of Motor Vehicles, Boats, and Airplanes" and file it with your income tax return if the value of your car is more than $500.
If you do not attach this form to your tax return, the IRS will not allow your deduction.
If the value of the car is over $5,000, a written appraisal is required. -
Step 2
If you claim a deduction on your return of over $500 for all noncash contributions, you must attach a Form 8283, "Noncash Charitable Contributions", and file with your return.
If you claim a total deduction of $5,000 or less for all noncash contributions, you need only complete Section A of Form 8283. -
Step 3
If you plan on deducting an item that costs more than $5,000, you usually need to complete Section B of Form 8283 which requires, in most cases, an appraisal by a qualified appraiser.
You need to keep evidence of your car donation and be able to prove the fair market value of the car. -
Step 4
If the deduction you are claiming is for $250 or more for the car donation, you will also need a written form prepared by the charity at the time of donation. The form should includes a description of the car and a statement of whether the charity provided any goods or services in return for the car. If goods or services were provided in return for the car, a description and estimate of the fair market value of the goods or services also needs to be provided.
