Car Donation Deduction Qualification Guidelines

In order to make the car donation deduction a smooth process, there are several qualifying guidelines for car donation deductions that must be adhered to.
First, you must OWN your car and not a dealer.
Vehicle donations are not just limited to car donations either. You may also donate boats, RVs, aircraft and more.
Also, if you, the owner’s adj. gross income are more than one half of your total amount of deductions then this may not qualify. In order to keep proper records and itemization for tax records, use Schedule 1040 to provide detailed information about the itemization of the tax write off or deduction.
For more information one should look at publication 526 for information on charitable contributions which can be found at the IRS website online.
One of the most important things to look into in regards to your car donation deduction is finding out the fair market value of your car that you are donating.
Once you have donated your vehicle, be sure to get detailed information on what the charitable organization plans to do with the car. Do they plan to put it to work for the organization? Do they plan to give it away to those in need?
If the charitable organization plans to refurbish the car and sell it, be sure they include what is done to the car in order to keep itemized records for tax return time.
Having information on what the organization providing the car donation deduction may be able to sell the car for a much higher value after repairs are made.
Be sure that the written statement on these details of your car donation also includes your actual name and ID in addition to the vehicle ID and when the car was actually donated in order to ensure you receive your car donation deduction smoothly.
Always remember that you will have to fill out dome forms such as Form 8283 which basically record that you have actually made a car donation to an eligible charity which will be included in your tax return documentation.
As far as charity eligibility, not all charities are equal! Be sure they are in fact eligible for car donation deductions! Look at our list here at the website or look at the Publication 78 at the IRS website for the list of organizations or just call the IRS and confirm the charitable organizations status.
You can also request documentation on the charitable organizations status from the organization itself if you need to do this in addition to gathering eligibility information from the IRS itself.