Things You'll Need:
- Car
- Truck
- RV
- Other motorized vehicles
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Step 1
Choose the right charity. A number of charitable organizations accept car donations. If you have a charity of choice, contact them to ask whether or not they accept car donations. If you do not have a charity of choice, you can go to charitynavigator.org or contact the Better Business Bureau for assistance finding the right charity for your donation. Additionally, a number of intermediary groups exist to assist people with vehicle donations for those folks who don't want to seek out their own charity. These groups often pay for advertising space and it should be relatively easy to locate one in your area. Make sure the organization you are donating your vehicle to has charitable status with the IRS. It must be listed as 501(c)(3) group in order to receive your tax credit.
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Step 2
Contact the charity about donations and arrange delivery or pickup of the vehicle. Most charitable organizations that accept vehicles have a very easy way of making the arrangements for their donations. They are usually willing to come and pick up the vehicle, but sometimes the cost of picking up the automobile is deducted from the tax credit you receive in exchange. It is best to check with the individual charity group first. You might be able to earn yourself some extra tax credit by dropping it off yourself.
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Step 3
Drop off the vehicle or wait for it to be picked up. Paperwork should be given to you upon delivery of the donation so that you can file for your tax deduction.
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Step 4
Transfer the vehicle's title to the organization you chose to donate to. This can be very important so that future problems with the vehicle won't trace back to you. A number of undeserved parking tickets sent to your home rather than to the vehicle's new owner can prove an unnecessary hassle. Transferring the title is very easy. Just take your registration and title to your local MVD and switch the name over to the new owner.
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Step 5
Find out what the vehicle is worth. If the organization you chose to donate to kept the vehicle rather than selling it, you may be entitled to its full Kelley Blue Book value. Frequently, an organization will opt to sell the vehicle rather than keep it. If this is the case, find out how much your vehicle sold for and report that number on your tax deduction.
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Step 6
File your tax deduction. The worth of the vehicle will determine the right way to claim your donation as a deduction. If the vehicle is valued between $500 and $5,000, an additional form must be attached to your taxes. The form, IRS Form 8283, is available through local IRS offices, on their website, or it can be included in the paperwork given to you by the organization that received your donation.
