Question:   I donated a used car to a qualified charity. I itemize my deductions, and I would like to take a charitable contribution for the donation. Do I need to attach any special forms to my return? What records do I need to keep?

Answer:   You must attach Copy B of Form 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes, to your income tax return in order to take a deduction for the contribution of a qualified vehicle with a value of more than $500.

• If you do not attach this form to your return when required, the IRS will disallow your deduction.
• If the value of the donation is over $5,000, a written appraisal is required.

If you claim a deduction on your return of over $500 for all contributed property, you must attach a Form 8283 (PDF), Noncash Charitable Contributions, to your return.

• If you claim a total deduction of $5,000 or less for all contributed property, you need only complete Section A of Form 8283 (PDF).
• If you claim a deduction of more than $5,000 for an item or a group of similar items, you generally need to complete Section B of Form 8283 (PDF) which requires, in most cases, an appraisal by a qualified appraiser.
• You will need to obtain and keep evidence of your car donation and be able to substantiate the fair market value of the car.
• If you are claiming a deduction of $250 or more for the car donation, you will also need a written acknowledgement prepared by the charity at the time of donation, that includes a description of the car and a statement of whether the charity provided any goods or services in return for the car and, if so, a description and estimate of the fair market value of the goods or services.