How do I Donate a Car in San Jose, California?
- 1). Qualify for tax deductions for donating to a charity. In order to receive a tax break, you must itemize deductions on your 1040A tax form. Your deduction can't be more than 50 percent of your adjusted income. Some other limitations/conditions exist, hence check with your tax preparer or read through the IRS booklet to ensure that you are filing the appropriate documents.
- 2). Collect all car paperwork and information. The following paperwork is not required, but will prove helpful in the donation process: title, insurance information (if applicable), VIN number, license plate number, make, model, year and mileage of the car.
- 3). Select an organization that will receive your donation. Three popular organizations in San Jose, California, include Donate a Car 2 Charity, Cars 4 Causes and Kars 4 Kids. Other charities such as public radio stations and schools often take car donations. Make sure the organization is a registered nonprofit 501(c)(3) otherwise, the donation may not be tax-deductible.
- 4). Contact the organization to indicate your desire to donate. Some organizations offer an online form, while others will take down all the information by phone. If you don't have a title for your car, most charities will still take the car but you must fill out and turn in Form REG. 227 at the Department of Motor Vehicles.
- 5). Schedule a date and time for the pickup and give pertinent information to the driver regarding location of the vehicle. The worth of the car for tax purposes depends on what the charity plans to do with the car. If they plan to sell it, the worth cannot exceed what it sells for. If they are going to use the vehicle, the value is the fair market rate of your vehicle which is generally determined by the Kelly Blue Book value. Once you give your car to the charity, they will mail you a formal notice of worth for tax purposes.
- 6). If the car is worth more than $500, fill out an IRS Form 8283 to be attached to the documentation when you file your yearly taxes.
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