Donate your unwanted or unused vehicle or vessel to Pirate’s Coral today! Your tax free donation will help Pirate’s Coral preserve, monitor and save our oceans coral and reef from extinction while also maximizing your tax benefits via a tax credit.
Pirate’s Coral is happy to announce that we are now accepting donations of all cars, trucks, motorcycles, trailers, boats, personal water crafts, RV’s and even semi’s.
Donating is as easy as 1, 2, 3
- Click on the, “Donate Vehicle Now” Button below and give us your name, phone number, any pictures you may have and vehicle information to be donated.
- We’ll contact you within 48 hours to arrange a convenient pickup time.
- You receive a tax credit receipt, often at the time the vehicle is picked up. It’s that easy!
What is a, “Tax Credit” and how can it help me?
- According to the IRS, a tax credit is a donation which subtracts tax credits from the amount of tax you owe. There are two types of tax credits:
- A nonrefundable tax credit means you get a refund only up to the amount you owe.
- A refundable tax credit means you get a refund, even if it’s more than what you owe.
- Please note that Pirate’s Coral is categorized as a, “Public Charity” meaning: “In general, an individual who itemizes deductions may deduct contributions to most charitable organizations up to 50% of his or her adjusted gross income computed without regard to net operating loss carrybacks.”
Here is how these kind of donations work
Step 1: Donate to a registered nonprofit
The most important consideration when choosing a charity is determining its “exempt” status. To be eligible for a tax deduction, the vehicle must be donated to a tax-exempt nonprofit organization, most commonly known as a 501(c)(3) organization.
To verify if an organization is tax-exempt, use the IRS search tool, or ask to see the organization’s IRS letter recognizing it as tax-exempt, (Search for Pirates Coral in California in the above link).
Step 2: Determine the deduction amount
According to the IRS –
- If Pirate’s Coral uses the vehicle for their own use you can claim the fair market value for the vehicle.
- If Pirate’s Coral sells your vehicle for more than $500 you can claim the full sale price for your tax deduction.
- If Pirate’s Coral sells your vehicle for less than $500 you can claim the fair market value up to a maximum of $500.
Step 3: File taxes and claim deductions
- If your vehicle is sold for LESS than $500 all that is needed is to write the deduction amount on your IRS 1040 Form.
- If your vehicle sold for MORE than $500 and less then $5,000 you must file an IRS Form 1098-c. (Please note that the Pirate’s Coral official receipt is a legal substitute for Form 1098-C and can be used to input all necessary information asked for by tax software from IRS Form 1098-C). In addition you may have to file IRS Form 8283 Section A or Form 8453, Please contact a tax advisor if you are unsure.
- If your vehicle is sold for MORE than $5,000 you must file IRS Form 8283, IRS Form 1098-c or legal receipt from charity as well a written appraisal of the vehicle’s value, (Please note that the Pirate’s Coral official receipt is a legal substitute for Form 1098-C and can be used to input all necessary information asked for by tax software from IRS Form 1098-C).
Step 4: Keep records
The IRS requires you to retain the following information for your records:
- Name and address of charity
- Date of donation
- Place where you donated your vehicle
- Description of vehicle (year, make, model, and mileage)
- Written acknowledgment or legal receipt from charity (when sold for more than $500)