Donating a car to charity not only provides support to your chosen charity but it also offers potential tax benefits for you too! Before you go ahead and donate your car, you might ask yourself: “Do I need to notify the DMV when I donate my car?”
In this article we explore the importance of notifying DMV of your car donation along with the step by step process of how to notify them.
Why It’s Important to Notify DMV?
Other than for legal compliance, there are a number of reasons why it’s important to adequately notify DMV of your car donation, these include:
- Transfer of Ownership: When you donate your car you are transferring its ownership to the charity of your choice. Notifying the DMV is important so that their records reflect the change in ownership.
- Release of Liability: Notifying DMV releases you from any liability associated with the your car after its been donated which is important if there are any accidents or legal issues with the vehicle after the transfer of ownership.
- Tax Deductions: Notifying the DMV and obtaining proper documentation is important in order to claim your tax deduction.
- Streamline the Donation Process: Ensuring that all documentation is in order streamlines the car donation process and having copies of any documentation required ensures that all necessary information is quickly accessible.
The Process of Notifying DMV When Donating Your Car
Now we understand why its important to notify the DMV, we take a look at the steps to follow when notifying the DMV of your car donation:
- Contact the DMV: Get in touch with your local DMV office, to do this you can find your local office on their website where you will find information specific to your state’s requirements.
- Gather Vehicle Documents: Prepare the necessary paperwork which usually includes the vehicle’s title, your ID and details about the charity that you will be donating your car to.
- Complete DMV Forms: Fill out the necessary DMV forms which often include a release of liability form and a notice of transfer form.
- Submit Your Notification: Follow the DMV’s instructions to submit the completed forms, which might involve mailing the forms to the DMV office for example.
- Keep Records: Keep copies of all documents submitted to the DMV as evidence of your compliance with the necessary DMV requirements
In conclusion, the answer to the question “Do I need to notify DMV if I donate my car?” is “yes!”
DMV notification is an important step of the car donation process as it not only ensures the legal transfer of ownership of your car, which in turn releases you of any liability in relation to that car, but its also required if you were looking to claim tax deductions for your contribution.
By following the steps outlined in this article and adhering to your states requirements you can donate your car while upholding your states legal regulations. By donating your vehicle to charity, you are able to support your local community. You should explore which charities accept car donations and enjoy the process of making a positive difference to others lives.