If you have a vehicle that you no longer want or need in Frederick, Maryland, you can donate it to a nonprofit organization. If the organization is listed with the Internal Revenue Service, your donation will be tax-deductible. The amount of your tax deduction depends on the fair market value of the vehicle, which is different from the price you paid for it. Instead, it is the amount that a buyer would pay for the vehicle in a normal market.
Instructions
1. Determine the fair market value of the car by checking the private party value on the Kelley Blue Book website (see Resources). Also check current sales prices of similar vehicles in Frederick by looking in the local newspaper classified ads and on the AutoTrader website (see Resources). Add together the prices you found and then divide by the total number of prices to get the average. Use this as the fair market value.
2. Locate the car title and keys to the car. If you can't find the car title, complete the "Application for Duplicate Certificate of Title (form #VR-018)" form at the Frederick Motor Vehicle Administration office at 1601 Bowman's Farm Road. As of April 2010, the fee is $20.
3. Select a charity in Frederick can accept tax deductible donations by searching on the IRS website (see Resources). National and local charities in Frederick accept vehicle donations. Examples include the Arc of Frederick County Inc., Big Brothers & Big Sisters of Frederick County Md Inc., Celebrate Frederick Inc. and the Make-A-Wish Foundation.
4. Contact the Frederick charity to make sure that they accept car donations and inquire about the process. Some charities require you to get the car to them while others, such as the Arc of Frederick County Inc., prefer to pick up the vehicle.
5. Arrange for a pickup of the vehicle or transport your car to the charity. Sign over your Maryland car title when the vehicle is delivered. Be sure to hand over the keys and get a donation receipt.
6. Wait for your final car donation forms to arrive in the mail within four to six weeks if the charity auctions off vehicle donations. If the charity auctions vehicle donations and it sells for $500 or less, you can claim only the fair market value of the car up to $500 for your tax deduction. If the car auctions for more than $500, you can claim the fair market value up to what the charity got for the car.
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