?>?> Tax Deductions in Minneapolis, St. Paul | Car Donations

Tax Deductions in Minneapolis, St. Paul

Looking for ways to get tax deductions in Minneapolis, St. Paul?

tax_deductions_minneapolis_st_paulDid you know that by donating a used car, truck or van, you can receive a tax deduction starting at around $500? Plus, you can rest easy knowing that your donation made a significant difference in another person’s life.

Welcome to Auto Technical, Inc.—a 501(C)(3) non-profit organization that has served the Minneapolis, St. Paul community since 1994. Over the years, we have watched recipients of our donated vehicles get on the road to better lives thanks to car donations by people like you.

When we receive donated vehicles, we refurbish and restore them, making them drivable and safe before we offer them to individuals and families referred to us by one of our community partners.

Tips for Tax-Deductible Car Donations in St. Paul, Minneapolis

Auto Technical, Inc. has been an IRS approved 501(c)(3) charity since 1994. Our Federal Tax ID # is 41-1813762.

Fortunately, for those of us with finances, stability and a heart for our communities, the federal government offers IRS tax deductions as an extra incentive toward vehicle donations. St. Paul automobile donation tax deductions are available through Auto Technical, Inc. because we comply with the law. This is important to note because not all organizations legally accept car donations.

Paperwork you will receive for your donation:

Please note that when you donate your vehicle to Auto Technical, you do not have to worry about acquiring this paperwork. Richard will make sure you get your own set of official documents when we pick up your vehicle. It takes less than 10 minutes to fill out the Donor’s Bill of Sale and the tax deduction form (two pages).

For donations valued at $500 or less:

  1. Tax donation receipt which includes all the charity information.
  2. This is all you need if your donation is $500 or less.

For donations valued at $500 to $5,000:

  1. Tax donation receipt which includes all the charity information.
  2. IRS requires a 1098-C which is an affidavit of value issue by the charity.
  3. Auto Technical also gives you a complete bill of sale. This is required because our charity has a dealer license, DL22738. Your vehicle donation is insured and bonded and motor vehicle services requires us to report the car is in our inventory. As a charity with a dealer license your donation receipt transfers all liability to Auto Technical, Inc.

For vehicle donation $5,000+

  1. You need all the paper work mentioned above.
  2. A written appraisal from a qualified independent appraiser (ATI will take care of this at no charge).
  3. IRS form 8282 and 8283 are reporting forms for items of higher value.

Auto Technical will fill out all of these forms completely, so they are ready for your tax preparation. All you have to do is sign the paperwork.

A Few Words of Caution

As mentioned earlier, when Auto Technical acquires your donated vehicle, our organization will ensure that you have all of the relevant paperwork: including tax forms and the donor’s bill of sale.

However, if you’re looking to donate your car to another organization, we strongly advise that you be aware of the following:

  1. If the organization tells you they will send you the 1098-C after they find out the value of the car, take this as a red flag. This almost always means the organization plans to sell the car at a charity auction, where the vehicle will sell at about 10 to 20 percent of its true value. This price is ultimately what goes on the 1098-C. Cars sold at charity auctions are done so at this cheaper rate because bidders, who are not allowed to drive the car, know people will donate cars when facing a large repair bill.
  2. You may also come across charities saying they can get a good price for your donated car because of the sources with whom they work. But donor, beware. After these charities bring someone else in to help them with the sale of the vehicle, this third party will be entitled to a percentage of the money revived. In addition, most charities are paying a tow company and auction seller fees. In these cases, don’t be surprised if your vehicle brings in a reportable price of $500 (mostly likely a price below the value of the car).

Donate Your Car With Peace of Mind

If you want to clarify any of the information above or ask  more questions related to tax deductions for donating a vehicle in Minneapolis, St. Paul, contact Richard today at 612-919-5526.