The amount you will be allowed to deduct on your taxes will vary depending on several factors which could include the price the vehicle is sold for or whether the vehicle is classified as a fair market value car donation. If your vehicle sells for more than $500, or if it qualifies for a fair market value tax deduction, you will receive additional tax paperwork after the sale of the vehicle takes place. In California the procedure for filing a Release of Liability is that you must return the pink portion of the title or DMV form REG 138 to your local Department of Motor Vehicles. This document releases you from future liability which may arise for any reason after the vehicle is donated. You should check with the charity to find out what their procedure is for providing you with this receipt when you submit your vehicle donation.įiling a Release of Liability with the California Department of Motor Vehicles is an important step you do not want to miss when you donate a car. This is just an initial receipt and enables you to claim a tax deduction of up to $500. Some charities will email you the initial receipt while others have the tow truck provide you with the receipt at the time of pick up. The process for receiving the tax receipt for your charitable donation may vary. Don’t wait till the last minute as there could be delays that could result in you being unable to claim the donation as a deduction for the current tax year. The charity should have possession of the vehicle or at least have the pickup well in the works, in order for you to claim your tax deduction in 2017.
One last point we should mention is that if you plan to claim your car donation tax deductionon your 2012 taxes, you need to make sure you donate the car well.You are also recycling an old vehicle and you also get to claim the car donation as a tax deduction.
Plus, you get your old vehicle or junk car moved off of your property free of charge. So therefore, are you ready to donate a car in California? If so, good for you! Donating a car to charity is a wonderful decision on many levels.įirst of all, your donation goes to help a great cause. In this post you will find some insight tips and educational fact on how to donate a car in California and some specific requirements you should be aware of that relate to California car donations in the United States or around the world.