Car Donation Charity
How to Determine the Fair Market Value
The information below provides a step-by-step means to determine the fair market value of a noncash charitable contribution.
Click here for the latest tax information about how to determine the value of your tax deduction
NOTE: Some of this information has been revised please see our new IRS Publications 526, 561 and 4303 pages for latest revision.
To speed your donation please fill out our online form.
Open this page on the Kelley Blue book site, http://www.kbb.com. (You can return to this page at any time to determine the fair market value of the vehicle. We also provide this information in our email instructions). |
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1. Kelly Blue Book Fair market Value Overview.
The fair market value, per the new tax law, is determined by the donor, not the charity, if the vehicle sells for less than $500.
The following step-by-step instructions will assist you in determining the fair market value of your vehicle using the Kelley Blue Book.
We try to keep this current but the Kelley Blue Book site is constantly changing. Please do read and follow these directions in order to get a very accurate idea of the fair market value of your donated vehicle. If there is any difference on the site from these instructions you will still find these instructions helpful.
2. Kelly Blue Book Fair market Value Procedure.
1. On the home page click on the link called "Used Car Values by Make and Model".
2. At the top of the next page you select the YEAR of your vehicle then select the MAKE of your vehicle and the MODEL from the pull down menus and then click GO.
3. The next page that comes up gives you three choices:
Kelley Blue Book Trade-In Value The value you may expect to be offered by a dealer when trading in your own used vehicle.
Kelley Blue Book Private Party Value The value of a used vehicle in a transaction between two consumers.
Kelley Blue Book Suggested Retail Value The asking price you may expect to find when shopping for a used vehicle from a dealer. 4. On the next page its asks you to select the Trim (details about your particular model). Choose from the list.
5. On the next page that comes up there are a series of boxes requiring information. In the top box you are asked for things like the type of engine or whether automatic or manual transmissions, etc. Check these correctly according to your car.
6. In the next box (down) you need to fill in the Mileage of your car and your Zip Code.
7. In the next box down the page, you need to check off the various Options that apply to your car. These are things like Power Steering, air conditioning, cruise control, etc. etc. Check all that apply.
8. The bottom box is entitled "Select Vehicle Condition". Choose "Rate It" or "Help Me", which is the last box on the right. Kelley Blue Book has changed the name of this button a few times, but it is always the last button on the right and when selected allows you to give a very detailed "rating" of your vehicle. This is important in order to accurately get the Fair Market Value for your vehicle.
9. After choosing "Rate It" or "Help Me" click on the bottom button called, "Get Pricing Report". This takes you to another page.
10. On this page you rate the following: Exterior Condition; Interior Condition, Mechanical Condition, Miscellaneous. Each of these categories has several aspects of the car's condition to rate. There are usually 3 columns for each of these aspects. Choose one rating for each. Do not skip any of these. You will thus fully rate your car.
11. When this is done click on "Get Pricing Report" at the bottom of the page. This takes you to a page that gives the Private Sale Value for your car rated exactly as it is, in its current condition. You should print this page for your tax record.
Now that you have the way to determine the fair market value of your vehicle or automobile please start the fast easy donation process.
3. Appraisals
Appraisals are no longer needed due to simplification of the new tax laws.
You may find it helpful to read our Tax Deduction Overview.
4. IRS Tax Information from the IRS Website
The publications on the IRS website are now in a viewable and printable form that require Adobe Type Reader to view and print. If you do not have this tool you can obtain it at the following link: http://www.adobe.com/products/acrobat/readstep.html. Acrobat Reader is free.
Here is the link for the IRS website: http://www.irs.gov/.
For information about determining the "fair market value" of a vehicle you can read "Publication 526 Charitable Contributions". This link is at http://www.irs.gov/pub/irs-pdf/p526.pdf. You can read the entire publication or you can start at page 7 of the document. Be sure to read the section entitled "Contribution of Property" and a section called "Determining Fair Market Value" and there is another section called "Cars, boats, and aircraft." This gives very specific information about that type of donation.
There is another IRS form that is pertinent, that is Publication 561. The publication is entitled, "Publication 561 Determining the Value of Donated Property". You can find that publication at http://www.irs.gov/pub/irs-pdf/p561.pdf.
There is a tax form that you will need when you fill out your return. It is form 8283. You can find this form at the IRS web page http://www.irs.gov/pub/irs-pdf/f8283.pdf. The instructions for this form can be found at http://www.irs.gov/pub/irs-pdf/i8283.pdf.
You can also contact the IRS directly for further assistance
Visit the IRS Contact Page at http://www.irs.gov/contact/index.html.
Here is the link to the new IRS information: http://www.irs.gov/pub/irs-pdf/p4303.pdf.
You can find direct links to all of these IRS webpages here.
Start your fast easy vehicle donation...
