The best way to donate your car or truck is to find a charity you support. It’s as easy as contacting them and finding out how they do things or if they are IRS-qualified. Keep in mind to watch out for those middleman or a go-between who advertises in different media platforms because some of them tend to get half the profit price of your donation. You can be certain that contributing you vehicle to charities lets you deduct its fair market value from your taxable income. Once you find a particular organization that is registered and from which you can qualify to get legal deduction claim, you can go ahead and donate. There are important things that you have to take note of first. One, you need to know the fair market value of your car. Two, file and be meticulous in your paperwork.

The moment you make the donation, get a tax receipt from the charity organization with important details on it such as the company’s name, tax number, donor’s name, date of donation and the car model information. Then, you can file the amount that the charity has made from selling your car as gifts to charity on Schedule A 1040 form from the IRS. If you plan to deduct about $500 to $5,000 from your taxes, the IRS may want to see definite proof like the detailed receipt, showing the sale amount as the tax deduction amount and you have to file it under section A of form 8283. For donations higher than $5,000, report them under section B of the same IRS form.