How much you can deduct when you donate a car to charity depends on what the charity does with the car.

If the charity sells the car, as most do, your deduction is generally limited to the gross proceeds of the sale. To claim an itemized deduction on Schedule A, you must get a written acknowledgement from the charity that includes your name and Social Security number; the vehicle identification number; the date and place of the contribution; the gross proceeds of the sale and a statement saying that the vehicle was sold in an arms-length transaction, that your tax deduction cannot exceed the gross proceeds and that that no goods or services were received in exchange for the donation. (If something was received, different rules apply.) You must attach this statement, along with IRS Form 8232, to your tax return.

One exception: If you are claming a deduction for $500 or less, you can deduct the fair market value of the car. You still need acknowledgement from the charity that includes a description of the car. You must keep this for your records but don’t need to send it to the IRS.

If the charity, instead of selling the car, will use as part of its mission, you might be able to deduct the fair market value. In this case, you must obtain a statement from the charity saying it plans to make significant use of the vehicle. The statement also must include a detailed description of the nature and purpose of that use. For specific requirements, see IRS Publication 4303, A Donor’s Guide to Car Donations, at www.irs.gov.