Donate a Car

Donating an old vehicle is a good method for taking a car off your hands and receiving a tax deduction. However, before signing away your vehicle to a charity, you need to first check if the charity is eligible to receive tax-deductible contributions. This information is available from the Charities Division of the Minnesota Attorney General's Office. You can also check a charitable organization's tax-exempt status with the IRS. Watch out for organizations that imply government recognition but are not approved. The amount of your tax deduction will depend on what use the charity makes of the vehicle. If the charity makes some significant use of the vehicle, your tax deduction will be higher than if they just sell it.