Car Donation Charity — donate a car
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.
NOTE: Some of this information has been revised please see our new IRS Publications 526, 561 and 4303 pages for latest revision.If you are not familiar with how tax deductions work when you donate a vehicle, |
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Read our Tax Deduction Overview. IRS provides simple steps for taxpayers regarding deductions on vehicle donations. Visit our web page that has all the links to important IRS information. Excerpts from IRS Publication 526 - Charitable Contributions - noncash charitable contributions... |
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Submit your online car donation form and feel free to ask any questions on that form.
IMPORTANT DONATION INFORMATION UPDATE!TWO FREQUENTLY ASKED QUESTIONS AT THE END OF THE YEAR:
QUESTION #1:
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?
ANSWER: YES!
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.
QUESTION #2:
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.
How much can you deduct? The importance of determining an accurate Fair Market Value for your car donation.
The responsibility for determining the fair market value of your vehicle rests with you, the owner. It is usually very simple to find out the fair market value. (See the links below.)
However, if you are placing a value of over $5000 on the contribution then an appraisal is needed by a qualified outside independent professional appraiser. The charity will help with this.
Assuming you are in a position where you can claim a tax deduction for your noncash charitable contribution then it is very important to accurately determine the fair market value of your automobile, motorycle, boat or vehicle. The fair market value does reduce your taxable income.
How to determine a vehicle's fair market value using the Kelley Blue Book .
Or using Edmund's True Market Value Used Car Appraiser.
Excerpts from IRS Publication 561 - determining the fair market value of donated property.
Donor Beware!
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.
Please read the Information regarding misleading claims about a car donation.
Not everyone can get a tax benefit. 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.
Start the donation or recycling process by filling out the Online Form.
