![]() Once the car is sold, the charity should send you Form 1098-C, “Contributions of Motor Vehicles, Boats, and Airplanes,” within 30 days. In that case, your deduction is capped at $2,000. If the charity sells your vehicle, then your deduction is limited to the proceeds from the sale - which may be less than you believe the car is worth.įor example, say you donate a car with an estimated value of $3,000 to a charity, but the charity sells the car for $2,000. Confirmation that the charity didn’t provide any goods or services in exchange for the donation-or an estimate of the value of any goods and services that were provided.The car’s vehicle identification number (VIN).Your name and Social Security number or taxpayer identification number.Regardless of how the charity uses the vehicle, if you plan on claiming that the car is worth more than $500, you must get a written acknowledgment of the donation. The organization may use the car in its operations or sell it and keep the proceeds. Your write-off amount and the documentation you need will depend on the value of the vehicle and what the charity will do with it. If, however, you claim the standard deduction-which nearly 90% of taxpayers do-then donating your car won’t benefit you at tax time. You’ll need to itemize deductions to get a tax break for your contribution. To take advantage of the deduction that’s available when you hand over an old car to charity, you must: Itemize Deductions Claiming a Tax Deduction for a Car Donation
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