Changes in laws limit the amount that a used car donor can receive Donate to the actual price for which the charity sells the car doantion for tax or truck. If you don't know about the charity or auto donation program, you may want to make sure that the charity is authorized by the IRS to be tax deductible. Request a copy of the charity letter from the IRS. This letter confirms the charitable status of the charity. Make sure, that the charity or car donation center gives you a line item detailed receipt for your car donation. Keep it in a safe place and file it with your tax return. Donations in kind can be an unwanted red flag for an IRS audit so make sure you document the value of the car and keep well detailed records. If you find that your old used car is worth more than $ 500, then you, as the donor, must complete Section A of IRS Form 8283 and submit your income tax return. Make sure you get a written confirmation along with the receipt from the charity because you are required to do so. If the charity turns around and sells the car, Instead of using transportation, the charity must give the donor a certificate that the car has been sold, which is called "arms length" between parties that are not related. And after the sale, report the sale price of the car to you within at least 30 days. The tax deduction for the donor's car donation is granted only for the amount that your car has sold to the charity. And if the charity does not sell and chooses to keep the car, it must give you, the donor, a written receipt for the vehicle within 30 days of the date of sale. The charity for car donations could also be required to deliver donor certification that shows how he wants to make use of or improve it, repair the car or other vehicle and also that it promises that it will not sell or transfer the car to another person or company. In the United States, the federal government imposed penalties on charities that they provide fraudulent confirmations or documents to donors. If the car, truck, or vehicle you wish to donate is worth $ 5,000 or more, an independent assessment is required and you must complete Section B of the IRS Form 8283. You must consult your accountant or accountant let's deal with it. If you think or know your car or truck or other vehicle is worth less than $ 5,000, you can use the Kelley Blue Book or a small manual from the National Car Dealer Association (NADA) to determine the market value. You can find these instructions online or in your local public library. You have to use the correct numbers for the mileage, date and exact condition of your car - document this as much as possible. Choosing the highest number in the manual for your car model and year of construction without considering the other options and factors will not make the IRS very happy. Take several current pictures of the car or truck and save all your vehicles receipts for new tires, repair work or necessary upgrades to prove its value. It is important to remember that as a donor, not as a benefactor organization, are responsible for determining the value of the car. It is you who pays all fines if the IRS challenges your numbers with an audit.