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Why and How Can I Donate My Car to a Charity
Choose a Charity
You want to make sure the charity you choose qualifies as an approved charitable organization. If you donate to an organization that isn't approved as a charity by the IRS then your donation won't be tax deductible. In order to see if your organization is an approved charity you can refer to the "Cumulative List of Organizations" published by the IRS annually. You can also call the IRS at 1-877-829-5500 to confirm that tax exempt status of an organization. If possible have the organizations name and address when you call. Not all organiztations are listed in the IRS's list of tax exempt organizations. Religous organizations such as churches, temples, synagogues, and mosques aren't required to register for tax exemption with the IRS and therefore won't be listed.
Filing for Tax Deduction
In order to qualify for a tax deduction you must itemize your deductions on your Schedule A of Form 1040. Be aware of the the guidelines for tax deductions so that you are within the leagal limits set forth by the IRS. You can find limitations of what you can deduct in Publication 526 or you can call the IRS at (800) 829-3676.
How Much Can I Deduct
Motorized vehicles that are for use on public roadways, highways, and streets; boats, and planes are qualified for tax deductible donations. One exception is a vehicle that owned for the sole purpose of sale, like on a car lot or owned by a dealer, are not qualified. The amount you are allowed to deduct typically depends on what the charity you donated it to plans to do with it. You should recieve a report of what will be done with the car from the charity you donated it to. For example, most charities will sell the vehichles that have been donated to them. If this happens, the amount you can deduct is limited to the gross proceeds of the sale of the vehicle. There are always going to be exceptions though so you should verify what you qualify for by referencing Publication 526 or contacting the IRS at (800) 829-3676.
Where can a donate my car?