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Car Donation Tips

11/20/04 | by Clarise | Categories: In real life

Tax deduction was one of the considerations I had for donating my car. To avoid tax trouble, I did a fair amount of research. Here are some tips:

1. Read the IRS Publication 4303 - A Donor’s Guide to Car Donation. This can be downloaded from http://www.irs.gov

2. Choose and Research on eligible charities. Read Publication 78, Cumulative List of Organizations described in Section 170(c) of the Internal Revenue Code of 1986. This provides list of organizations eligible to receive tax-deductible charitable contributions. One can also search the IRS website: http://www.irs.gov/charities/article/0,,id=96136,00.html
If you are unsure of the charity, call the IRS Customer Account Services division for Tax Exempt and Government Entities at (877) 829-5500. From my experience, the IRS Customer Account Services representatives were very helpful in giving tips once you have explained that you are donating your car and want to make sure that you are following the IRS guidelines.

3. Contact your chosen charity. In my case, the charity sent me the paper work to fill up. They arranged for a tow company to call me to arrange for a pickup.

4. On the day of the pickup, write up something that the tow company driver can sign for that the car was picked up and that all the filled in documents that the charity sent you are in the car. This is for your documentation purposes.

5. Send in to the Department of Motor Vehicles, the DMV Notice of Release of Liability (REG 138) - DMV Form REG 138. I did a Post Office Certified Mail Delivery for my records.

6. The most important of all tips are: Photocopy and keep all your documents for your records. Photograph your car to show the IRS, if you are audited. If your deduction is for $250 or more, you must obtain a written acknowledgement from the charity. You don’t have to include it with your tax returns, but keep it in case the IRS has questions. If your deduction exceeds $500, you must fill out Section A of Form 8283 when you file your tax return. If your deduction tops $5,000, you must obtain a written appraisal from a qualified appraiser.

I took pictures of my car, Mitsi as we fondly call it, as it was being towed away. I felt a little sad to see it go, as I have been attached to that car. It served me well. I hope contributing Mitsi, can make a difference and assist my chosen charity Greater Bay Area Make-A-Wish Foundation, help children who have been diagnosed with a life-threatening illness, fulfill their wishes this holiday season.

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This blog contains thoughts that range from non-technical to technical. Its name is derived from "Yakity Blah Blah" a column I once had that discussed a cornucopia of ideas. Who am I? I'm Clarise Z. Doval Santos, providing Project Management and Technical Leadership for data management and analytic, data science, IoT and sensor analytics ecosystems 37.652951177164 -122.490877706959

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