Many service members face unique challenges when executing a Permanent Change of Station (PCS), especially when it comes to vehicle ownership. Due to costs, timing, or regulations, some are unable to bring their vehicles to their new duty station, creating a need for alternative options like donation.
This page provides important legal considerations and step-by-step guidance for service members who wish to donate a car when relocating, ensuring you protect your rights and understand the implications of your decision.
Legal prerequisites
- Service member must be on orders for a PCS.
- The vehicle must be registered in the service member's name or jointly with a spouse.
- The donation must comply with the Servicemembers Civil Relief Act (SCRA).
- Donor must have clear title to the vehicle.
- Donation must be before the vehicle is shipped if moving OCONUS.
Step-by-step
Confirm Ownership
Ensure that the vehicle is legally registered in your name or jointly with your spouse. If jointly owned, both parties must agree to the donation.
Check Your Orders
Review your PCS orders for details regarding the move. This will help determine timelines and any associated benefits that may apply to your move.
Understand SCRA Protections
Familiarize yourself with the Servicemembers Civil Relief Act, which provides specific protections and rights to military members, including issues surrounding vehicle donation.
Contact Wheels of Change
Reach out to Wheels of Change to initiate the donation process. They will guide you through the specifics and provide necessary paperwork.
Complete Necessary Documentation
Fill out the required documents, including the title transfer and IRS 1098-C form, which is essential for your tax deduction.
Schedule Pickup
Coordinate with Wheels of Change to schedule a pickup time. Ensure that all documentation is ready for a smooth process.
Keep Records for Tax Purposes
Retain copies of all documents related to the donation for your tax records. This is crucial for claiming any deductions on your tax return.
Georgia specifics
In Georgia, vehicle ownership can be complicated by community property laws if the vehicle is jointly owned. Make sure both owners are in agreement before proceeding with the donation. If you are a resident of Georgia and are moving to another state, your state of legal residence (SLR) may impact your ability to claim certain tax deductions related to the donation.
Documents you'll need
| Document | Notes |
|---|---|
| Vehicle Title | Must be signed over to Wheels of Change; both owners need to sign if jointly owned. |
| IRS Form 1098-C | This form will be provided by Wheels of Change after the donation and is necessary for tax deductions. |
| PCS Orders | Keep a copy with your records to establish the move for future reference. |
| Donation Receipt | Essential for tax purposes, detailing the vehicle donated and its value. |
| Identification Documents | Valid ID for both owners to verify identity during the transfer process. |
| Power of Attorney (if applicable) | If one owner is unable to sign, a notarized Power of Attorney may be required. |
Common pitfalls
⚠︎ Not verifying joint ownership agreements.
Fix: Confirm that both owners are in agreement about the donation to avoid disputes.
⚠︎ Missing documentation for tax deductions.
Fix: Ensure all forms, particularly the IRS Form 1098-C, are completed accurately.
⚠︎ Failing to understand PCS timelines.
Fix: Be aware of your PCS orders and plan your donation accordingly to avoid last-minute issues.
⚠︎ Overlooking SCRA protections.
Fix: Familiarize yourself with your rights under the SCRA to ensure compliance and protection.
When to consult an attorney
If you are facing any potential issues regarding joint ownership, divorce, bankruptcy, or disputes about vehicle ownership, it's wise to consult an attorney. Legal matters can complicate the donation process, and having professional guidance can protect your interests.
Tax implications
Donating your vehicle may also provide you with tax benefits. Under IRS guidelines, you can claim a deduction based on the vehicle's fair market value, provided it exceeds $500. Ensure you receive the IRS Form 1098-C from Wheels of Change, as it verifies your donation for tax purposes.