If the donated vehicle is going to be sold, which is usually the case, you won't get Form 1098-C until after the sale. If you do not attach the Form 1098-C or a statement containing the same information with your tax return when you file your taxes, your donation will not be deductible. Remember, if you donate your car, always ask for a federal Form 1098-C (Contributions of Motor Vehicles, Boats, and Airplanes) or a statement containing the same information from the charity. For more information contact the Michigan Secretary of State's office or visit their website. A record of sale is a form or document that includes the name, address, driver's license number, and signature of the person to whom the vehicle is sold and the purchase price and date of sale of the vehicle. Michigan law requires a person who has donated a vehicle to keep a photocopy of the reassigned title or record of the "sale" for 18 months. In a case where the transaction will not be completed at the Secretary of State's office, you must have a "record of the sale" in addition to signing over the title. If the title is not reassigned to a charity or person who is receiving the donated vehicle, then you are presumed to be the owner of the automobile, and you may be liable for tickets, towing, and storage fees. What do I need to know about passing title to the charity?īe very cautious when donating an automobile if you are not accompanying the recipient to the Secretary of State's office to transfer title. A copy of the publication is available on the IRS website. For more information, see IRS Publication 526 or consult your tax adviser. Different rules apply if you claim a deduction of $500 or less. ![]() Generally, if you claim your donated vehicle has a value of more than $500, you can deduct the smaller of the gross proceeds from the sale of the car by the organization or the car's fair market value. ![]()
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