The Initial Paperwork

• 1). Pick a charity in which to donate the car. When choosing a charity, assure that the charity is eligible to receive your donation and for you to claim the donation as a deduction. Ask for a copy of their IRS letter of determination for your records.
  
  
• 2). Find out if the charity you have chosen will keep the car for personal use or if they are going to sell the car and use the proceeds for their use. This will impact what information you need to obtain for your taxes. If the charity is going to sell the car, find out if the car will be sold for a flat fee (which may be as minimal as $45) or if the proceeds will be affected by the value of the car. You will need to know how much these proceeds will be.
  
  
• 3). If the charity is going to use the car for personal use, or if the car's value will impact the sale price of the car, determine the value of your car. Determining the value of your car before donation is wise anyway. If you believe your car is worth less than $5,000, the Kelley Blue Book, Hearst Black Book or National Auto Dealer's Association can provide the value of your car. If your car is worth more than $5,000 an independent assessment must be obtained.
  
  
• 4). Keep the value assessment paperwork for your car. It is also helpful to take photos of your car and keep receipts for any improvements or upgrades made to the car in case the IRS has questions about your deduction.
  
  

Donation Paperwork

• 1). After you have determined what value the charity will receive from your donation and how much your car is valued at, you can donate the car. You can now also proceed to determine what paperwork you will need to obtain a car donation tax receipt from the charity. The first piece record you will need is a written acknowledgment from the charity that you donated the car you did. You will also need their tax identification number. If the car is worth $500 or less, you have all the information you need to deduct the car donation from your taxes. Fill out the proper information on your taxes, and keep the letter of determination, records of the car's value and the acknowledgment from the charity in your records in case the IRS has any questions.
  
  
• 2). If the car is worth more than $500, but less than $5,000, you need all the previous information you have collected. Keep this information in your records. You will also need to obtain tax Form 8283, Section A, fill it out and turn it in with your taxes. A copy of Form 8283, Section A can be found here: http://www.irs.gov/pub/irs-pdf/f8283.pdf
  
  
• 3). If the car is worth more than $5,000, you will need all the previous information. You will also need to fill out tax Form 8283, Section B. A copy of this form can be found here: http://www.irs.gov/pub/irs-pdf/f8283.pdf. You will also need to include the written assessment for your car's value with this form.
  
  
• 4). File your taxes, being sure to include the necessary paperwork for the car's value.
  
  
• 5). Keep copies of the paperwork and records regarding the value of your car and the car donation for at least five years in case the IRS ever has any questions.