Donating a Car

Finding a Qualified Charity

According to the Internal Revenue Service (IRS), a "qualified charity" is one the IRS recognizes as being able to receive tax-deductible donations. You can find such charities:

• In the electronic version of Publication 78.

• By searching the online version of Publication 78.

• When you refer to Eligible Donees Generally Not Listed in Publication 78.

It's also wise to research your charity of choice beyond its tax-deduction benefits. You can find help from:

• The IRS Web site or when you call them at (800) 829-3676.

• The National Association of State Charity Officials (NASCO).

• The Consumer Protection Unit of the Idaho Office of the Attorney General.

• Chapter 12 of the Idaho Statutes, Idaho Charitable Solicitation Act.

Understanding Tax-Deductible Vehicle Donations

If you plan to deduct your vehicle donation from your taxes, first make sure your charity can accept tax-deductible donations (see above). Then it's time to focus on your car's value, your limitations, and of course, the paperwork.

DMV.ORG provides important highlights below, but you may also want to download a copy of the IRS Publication 4303, A Donor's Guide to Car Donation.

Determine the Fair Market Value

You can only deduct as much as your vehicle's fair market value, which is not the same as the Kelley Blue Book value. Refer to Publication 561, Determining the Value of Donated Property, when determining the fair market value of your vehicle.

Limitations on Vehicle Tax Deductions

Naturally, there are limitations on tax deductions as large as vehicle donations. For example, while your tax deduction can't go over your vehicle's fair market value, it also can't equal more than 50% of your annual gross income.

Publication 526, Charitable Contributions, helps you stay within those limitations.

The Paperwork

Familiarize yourself with the paperwork you need, and keep it handy until tax season. April 14 is no time to start gathering documents.

Common documents for vehicle tax donations include:

• A qualified appraiser's written appraisal of your vehicle.

• The charity's written acknowledgment of the donation.

• Form 8283 Noncash Charitable Contributions.

Find a list of all necessary paperwork in Publication 4303.

Notify the Idaho Transportation Department

When you transfer vehicle ownership you must sign the title as the seller and the charity or organization must sign as the buyer.

You must then notify the Idaho Transportation Department (ITD) within five days of donating the vehicle. Simply download and complete a Notice of Release of Liability and send it to your County Assessor's office along with a check or money order for $2.

If you are an Ada County resident, send your release form and payment to:

• Ada County Processing Center

• 9115 Chinden, Ste. 103

• Garden City, ID 83714

Note that you must take care of any liens on the vehicle before you transfer ownership and notify the ITD.