Keep Careful Records for Vehicle Donations

Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about Vehicle Donation and other Car Donation topics.

How do I get my tax deduction for the vehicle donation?

Keep Careful Records for Vehicle Donations

Getting a tax deduction for vehicle donations requires the donor to be organized and to keep good records. Make sure the charity receiving the vehicle is registered as a 501(c)3. Otheriwse you cannot get the tax write-off.
You also will need receipts from the charity. The first receipt is for the transfer of the vehicle. The receipt will include the charity's name and identification number. The second receipt is for the resale of the vehicle if it is more than $500. The receipt is provided by the charity after it sells the vehicle.
If it plans to keep a vehicle worth more than $500, it needs to provide you with a written statement on how it will use the vehicle in its work.
Before you donate your vehicle it is not a bad idea to remove the license plate, unless state law prohibits it. This will help you avoid liability problems.

   

Comments

Nobody has commented on this tip yet. Be the first.



Name:


URL: (optional)


Comment:


Not finding the advice and tips you need on this Car Donation Tip Site? Request a Tip Now!


Guru Spotlight
Carma Spence-Pothitt