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.
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IMPORTANT: Click here for the Latest Tax Information about
How to Determine the Value of your tax deduction
NOTE: The Fair Market Value is no longer the determining factor for the value of a vehicle donation.
You should also be cautious of any Car Donation Charity that claims to offer you the Full Fair Market Value for your vehicle donation. If a charity does claim this you must read the fine print and be very aware of the actual IRS information on this subject.
Message from a Fire Dept. Lieutenant: "I just wanted to say "Thank you" to everyone that donates to this cause and to all of the people that work for this cause. We just received more teddy bears and we can't say enough about all of you.
"I gave a teddy bear to a 12 year old girl who was in a car accident. She took if from me, smiled with a tear on her cheek, and hugged it. It made her day so much better and it wouldn't have been possible without Teddy Bear Cops and the wonderful, giving people in our country. Thank you." — Lt. White Fire Dept.
The rest of the information on this page may have uses but is no longer the main method of determing the value of your car donation and the amount of the tax deduction.
(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.Above that it is determined by the actual sale price of the vehicle at auction, or however the charity sells the vehicle.
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 Tips for Buying and Selling
Our charity is fully recognized as a
bona fide 501(C)(3) Charity by the IRS, and does provide the
Official Receipt you will need for your tax deduction.
We have been picking up donated vehicles through the Internet since the 90s.
Appraisals are no longer needed due to simplification of the new tax laws.
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.