Gifts and Charitable Contributions – Car Donation

Question:   I donated a used car to a qualified charity. I itemize my deductions, and I would like to take a charitable contribution for the donation. Do I need to attach any special forms to my return? What records do I need to keep?

Answer: If you claim a deduction of at least $250 but not more than $500 for the car donation, you will need only a written acknowlegment from the charity at the time of the donation. The acknowledgment must include the name of the charity, a description of the care, and a statement of whether the charity provided any goods or services in return for the car and, if so, a description and estimate of the fair market value of the goods and services. Do not attach the acknowledgment to your return: instead, retain it with your records to substantiate your donation.

If you claim a deduction of more than $500 for the car donation, you will need the following:

• Copy B of Form 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes. Attach this form to your tax return.
• Section A of Form 8283 (PDF), Noncash Charitable Contributions. Complete Section A only if you claim a  deduction of $5,000. Attach this form to your tax return.
• A written acknowledgment form the charity that includes your name and taxpayer identification number, the vehicle identification number, the donation date, and a statement of whether the charity provided any goods or services in return for the car and, if so, a description and estimate of the fair market value of the goods or services. Attach this acknowledgment to your return.
• You will need to obtain and keep evidence of your car donation and be able to substantiate the fair market value of the car.

If you claim a deduction of more than $5,000 for the car donation, in addition to the items listed above for deductions of more than $500, you will also need the following:

• Section B of Form 8283 (PDF) You should complete Section B, which generally requires an appraisal by a qualified appraiser, instead of Section A, and attach the form to your return.
• A written acknowledgment by a qualified appraiser. Do not attach the appraisal to your tax return; instead, keep it with your records to substantiate your donation.