California Car Donation Made Easy
To donate a car in California, you first begin by submitting an online car donation form or by calling the charity directly. If you would like to claim the car donation as a tax deduction, make sure to check that the charity is an IRS recognized nonprofit organization, like Giving Center.
The process of getting your tax receipt for a charitable donation may vary by the charity. Some charities will email you the receipt while others often have the tow truck hand over the receipt at the time of pick up. Remember, this is just an initial receipt witch will enable you to claim a tax deduction of up to $500. Check-in with the charity to find out their procedures for providing you with this receipt when you submit your vehicle donation form.
In California, the license plates will remain with the vehicle, so do not remove them before your pickup.
File a Release of Liability with the California Department of Motor Vehicles. This document will release you from any future liability which can arise for any reason after the vehicle has been donated. For California, the procedure for filing a Release of Liability is that you have to return the pink portion of the title or DMV form REG 138 to your local Department of Motor Vehicles. You may file your release of liability online at http://www.dmv.ca.gov.
If the charity sells your vehicle for more than $500, or if it qualifies for a fair market value (FMV) tax deduction, you will receive additional tax paperwork after the sale of the vehicle. The amount you may deduct on your taxes will vary depending on many factors which may include the price the vehicle was sold for or whether the vehicle is considered as a FMV car donation.
If you plan to claim your car donation tax deduction on your current year’s taxes, you will need to donate the car well before the deadline of December 31. The charity will need to have possession of the vehicle before midnight on December 31st, or at the very least have a pickup well in the works, for you to claim your tax deduction. Do not wait till the last minute, as there may be delays that could result in you being unable to claim the donation as a deduction for the current tax year.
If you have any further questions related to your car donation and tax deduction, most often charities are relatively knowledgeable about the process as well as the paperwork needed. You should also consult a CPA or accountant for all the specifics regarding your tax situation.
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