IRS Publication 526
Charitable Contributions - Information for donors
The following are excerpts from IRS Publication 526.
Cars, Boats, and Airplanes
The following rules apply to any donation of a car to a qualified organization after December 31, 2004. These rules also apply to any donation of a boat, airplane, or any motor vehicle manufactured mainly for use on public streets, roads, and highways.
Deduction more than $500. If the qualified organization sells the car and you claim a deduction of more than $500, the following rules apply.
1. You can deduct the smaller of: a. The gross proceeds from the sale of the car by the organization, or b. The car’s fair market value on the date of the contribution.
Deduction $500 or less. If the qualified organization sells the car for $500 or less and exceptions 1 and 2 (described earlier) do not apply, the following rules apply.
You can deduct the smaller of:
$500, or
The car's fair market value on the date of the contribution. But if the car's fair market value was more than your cost or other basis, you may have to reduce the fair market value to get the deductible amount, as described under Giving Property That Has Increased in Value, later.
If the car's fair market value is $250 or more, you must have a written statement from the qualified organization acknowledging your donation.
Fair market value. To determine a car's fair market value, use the rules described under Determining Fair Market Value, later.For the entire IRS publication click here to visit the IRS website
