• Once you have handed over the car to the charity organization make sure that the paper work involved in transferring the ownership is done properly. Never ever forget to leave the field of ‘ownership’ vacant in the documentation. In this way, you may land yourself into trouble. If you skip out this process and if some criminal activity happens with the car, then still you would be held responsible for the act no matter who was driving the car at the time of crime because the car is in your name according to the documentation work.
• The other important paper work you should take care of while donate your car is to get the receipt. The actual value of the car which the charity organization gets after selling it, should be received by the donor in the form of the receipt. This is a necessity if the value of your car was more than $500. IRS has a great interest in these kind of document.
• In case your car value is less than $500 or the charity organization decides to make use of the car for its internal use then in such a case the donator does not need a receipt from the charity organization. In such a case only the actual value of the car can be reported to the IRS department without actually submitting the receipts.
• In case the value of car donation is more than $5000 then in such case an appraisal is needed from an outside agency who would actually give an undertaking that the donator party is trust worthy and has clean background. This document has to be attached with the IRS 8284 form while filing your income tax. If not done then legal actions can be taken.
• Even after donation if possible keep a track of your vehicle for a couple of weeks. This act will make sure that the charity organization has benefited to the maximum from it and no misuse has been done in between. This would justify your purpose of donation.
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