Donate car to charity oregon1/23/2024 ![]() ![]() If you’re not sure whether an organization qualifies, search for the charity in the IRS Tax Exempt Organization Search Tool, or call the IRS at 87 and have the charity’s name and address handy. Most charitable organizations that are qualified to receive tax-deductible donations have a 501(c)(3) status with the IRS. Ensure the organization is qualified to receive tax-deductible donations If you donate your vehicle to an organization that isn’t qualified by the IRS to receive tax-exempt donations, or if you don’t get the proper paperwork, you won’t be able to claim a tax deduction. When donating your car to charity, take precautions to avoid being scammed or contributing to a questionable charity. If you use any of today’s best online tax software, the program should fill out the required forms for you automatically after you answer questions about your donation. You’ll need to attach Form 1098-C or any other written acknowledgment, and Form 8283, “Noncash Charitable Contributions,” to your tax return when you file it. In that case, the written acknowledgment from the charity should confirm that the organization plans to use the vehicle and describe its intended use. However, if the charity intends to use the car in its operations, you can deduct the car’s fair market value on the date you donated it. The gross proceeds received from the sale. ![]() A statement certifying that the charity sold the car in an “arm’s length transaction between unrelated parties.” In other words, the charity didn’t sell it to an employee or another related party at a discount.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. ![]()
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