Car Donation Charity—Teddy Bear Cops™— Tax Deduction Information
This page is an effort to make available to donors all of the information about tax deductions and tax benefits in an understandable format.
...Can Permanently Affect A Child.
Some Care and a Teddy Bear Can Prevent This.
Turn That Old Vehicle Into Teddy Bears for Kids!
|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."
If you are not familiar with how tax deductions work or are unsure if you can receive a tax deduction when you donate a vehicle, you can start by reading our Tax Deduction Overview.
If you are looking for a tax write-off or tax break and wish to help children, you can fill out our online donation form to start the process.
IMPORTANT: 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.
Tax Deductible Car Donation — This section provides some basic information about tax deductions and some points that donors should be aware of.
A car donation can definitely be tax deductible. But, those wishing to donate a car or vehicle should be aware of false and misleading claims, such as Maximum Deduction, Full Fair Market Value and Fully Tax Deductible made by certain online car donation charities or in radio or TV commercials or other media articles.
Do you qualify for a Tax Deduction?
Not everyone can get a tax write off. For basic information about whether your car donation might be tax deductible please read our tax deduction overview or consult your tax preparer.
For those that do not itemize deductions, cannot benefit from a tax deduction or do not want a tax deduction the recycling program or auto salvage program is an option.
How much can you deduct?
Prior to the change in the tax laws for car donations, the value of the donation was based upon the actual fair market value of the vehicle. This value was very difficult for people to figure out and caused various complications and problems.
Thanks to the new tax law, the IRS has taken the guesswork out of how to determine the value of your vehicle.
Beginning January 1, 2005 you may deduct the full price we receive for the sale of your vehicle. This greatly simplifies the process for you in several ways.
Under the new law, if your vehicle sells for more than $500 then the following applies:
If you car sells for $500 or less at auction, you may deduct what you determine as the fair market value of your vehicle or the amount the vehicle sold for, whichever is less, and as long as that figure is under $500.00.
Additional car donation tax information can be found on these web pages:
Visit our web page that has all the links to important IRS information.
Start the donation or recycling process by filling out the Online Form.
Will my donation be good for the year that I sent in the donation form, even if I don’t receive the receipt until the beginning of the New Year?
IRS Publication 4303, “A Donor’s Guide To Vehicle Donations” states:
“… the written acknowledgment must contain … the date of the contribution…”
The date of contribution is the date that we received the donation form. So it can even be on the 31st of December and will still be for that tax year.
The only exception might arise if you cancel the donation and then resubmit it later, or if the donation is canceled by us or the towing/auction facility due to reasons of inability to make pick up arrangements or lack of proper vehicle documentation, etc. Generally if you work with the towing/auction facility and assist in any problems that might arise then your donation will still be considered effective the date you filled out the donation form.
If I submit the donation form on the last few days of the year and the towing/auction facility does not pick up the vehicle until the beginning of the New Year does the donation still count towards the current year, i.e. the year I submitted the donation form online?
ANSWER: YES!, as stated above.