Do I need to notify the CA DMV if I donate car? California

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California Vehicle Donation

Yes. Every time you donate used cars, even if no money changes hands, you must do three things:

  1. Sign the car title over to the recipient in a title transfer.
  2. Have the recipient sign the title. (Titles go with the new owner.)
  3. Notify the CA DMV with a Notice of Transfer and Release of Liability. (You must do this even for a car donation.)
The Notice of Transfer and Release of Liability form is available at any DMV office. Alternatively, you can also complete this online with the license plate number, the last five digits of the VIN, and the charity’s name and address.

Once you’ve done these things, the used car is no longer your responsibility.

Donate Car to a 501(c)(3) Charity

To get the tax benefit of car donations, select a charity with 501(c)(3) status. The charity will issue you a receipt. At this point, you may either:

  • Take a deduction on your income taxes for the value of the car, up to $500, or
  • Wait until the charity sells your vehicle donation, and then deduct the sale price of the car.
For questions about the tax benefits you can get when you donate a car, contact a tax accountant.

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