Step 1: Donate to a registered nonprofit.

  • The most important consideration when choosing a charity is determining its "exempt" status. To be eligible for a tax deduction, the car must be donated to a tax-exempt nonprofit organization, most commonly known as a 501(c)(3) organization.

  • To verify if an organization is tax-exempt, use the IRS search tool, or ask to see the organization’s IRS letter recognizing it as tax-exempt                         Complete Picture is a nationally recognized 501(c)(3) organization. Our Tax ID number is 83-3690178.

You can receive a tax deduction by following these four simple steps.

Step 2: Determine the deduction amount.

According to the IRS -

  • If the charity sells your car for more than $500:"exempt" status.                   You can claim the full sale price for your tax deduction.

  • If the charity sells your car for less than $500.                                           You can claim the fair market value up to a maximum of $500.

  • Sometimes a charity may use the vehicle for its own use. In such a case, you can claim the fair market value for the car.                                            

Step 3: File taxes and claim deductions.

According to the IRS -

  • The IRS requires you to retain the following information for your records:                                        

  • If your car sold for more than $500:

  1. IRS Form 1098-c. Many charities, like Kars4Kids, provide a receipt that can be used in place of the 1098.

  2. IRS Form 8283 Section A 

  3. For e-filing - Form 8453

  • If your car is sold for less than $500:   

  1. IRS Form 8283

  2. IRS Form 1098-c or legal receipt from charity

Step 4: Keep Records.

  • If the charity sells your car for more than $500:"exempt" status.                 

1. Name and address of charity

2. Date of donation

3. Place where you donated your vehicle

4. Description of vehicle (year, make, and model)

5. Written acknowledgment or legal receipt from charity (when sold for more than $500).

The receipt you’ll receive from Complete Picture contains all the above information
and is all the documentation you’ll need.
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COMPLETE PICTURE

Headquarters:   Redwood City, CA  94061     323.683.5689