Tax Information

At the time of the pick up we provide a donation receipt for your records.

  • You will also receive a 2nd IRS tax form 1098C stating the sale price of the vehicle. This is the amount you are eligible to deduct on your tax return. (All donated vehicles qualify for a $500 or larger tax deduction),/
  • According to the tax law effective January 1, 2005, if the claimed value of the donated vehicle exceeds $500, the taxpayer is eligible to deduct the gross proceeds of the sale. This is typically equal to or greater than the trade-in value of the vehicle.

The Harbor does not ship your car off to be sold for less than its potential value. We appreciate our supporters and do everything possible to ensure the highest possible tax deduction for each donor. Most of the donated vehicles will be transferred to a needy individual for significantly below fair market value in furtherance of donee’s charitable purpose, Every reasonably repairable car is restored to good running condition and detailed inside and out to increase its value.

The Harbor receives 100% of the net proceeds to fund new and existing programs helping many families in need. The Harbor provides food, clothing, housing (free of charge) to men who are working hard to turn their lives around. We couldn’t do it without your generosity!

You benefit by the potential increase of your donations value. Plus you avoid the costs associated with selling your car. No need to pay for advertising, no loss of privacy and possible security risk, and no need to pay for vehicle registration, insurance, and repairs to keep your car in running condition while you wait for a buyer .

Does my car have to be running to donate it? 
In most cases we can take your car, running or not. However, it must have an engine and be tow-able.

Do you only accept cars for donation? 
Many types of motor vehicles are accepted including boats, motorcycles, trucks, and cars.

How long will it take to pick up my vehicle?
We can pickup your vehicle at your convenience. We make donating your car as simple and convenient as possible. Just one phone call and five minutes of your time is all that is required to complete the process Do I have to be with the vehicle at the time of pick-up? No. Special arrangements can be made – just let us know what is best for you..

What paperwork do I need? 
The only paperwork needed is a signed title or a photo copy of your license and a signed document allowing us to obtain a copy of your lost title

How does the new law effect my tax deduction? 
Donors are no longer responsible for determining the deductible value of their donation. Instead, they will receive an IRS Form 1098-directly from the charity. The completed form will include the gross dollar amount for which the vehicle raised for the charity. This figure will be the amount of their deduction.

Will I get a tax receipt for my donation?
Yes, our driver will issue a tow receipt and the first copy of your 1098 receipt at the time of pick-up. This is not your final tax receipt unless the sale of your vehicle does not exceed $500. This initial acknowledgement will indicate your name as well as the year, make and model of the car you are donating. After your vehicle is repaired and detailed it will be sent to our fund raising auction, or be transferred to a needy individual for significantly below fair market value in furtherance of donee’s charitable purpose Shortly afterward you will receive the second portion of your 1098c form stating the actual sale price of your vehicle. This receipt is mailed to your home usually within 6 weeks of your donation.

What can I claim as a deduction?
According to the tax law effective January 1, 2005, if the claimed value of the donated vehicle exceeds $500, the taxpayer is eligible to deduct the gross proceeds of the sale.

How is the value determined on the vehicle donated? 
The value is determined by the gross proceeds raised from the sale of the donated vehicle. You no longer have the burden of determining the value yourself or the expense of having your vehicle appraised.