Donating Cars and Tax Benefits
- Are you thinking of selling or trading in that old car, boat or RV? Why not donate the car or vehicle instead? As a charitable contribution your donation of a car could make a big difference.
Designated charities are able to accept most cars and vehicles running or not (exceptions include older cars and vehicles whose value would not offset the cost of towing). Most organizations will make arrangements to conveniently and quickly pick up your car donation at no cost to you. The charitable organization will handle the car title transfer requirements and provide you with a tax deductible car donation receipt at the time of pick up.
Car and vessel donations made to bona fide charitable organizations are tax deductible to the full extent of the law. please, verify that all charities you consider, for donating cars, are classified with the IRS as non-profit charitable organizations. However, individual tax situations vary so please check with a tax professional to determine what if any tax benefit you may receive from a tax deductible donation.
Donating Cars and the IRS
The IRS allows you, the taxpayer, to claim a tax deduction of (a) the value of your vehicle up to $500 or (b) if the vehicle is sold(by the charity)for more than $500 the organization will mail you a postcard with that value for your tax purposes.
Donor's Guide to Car Donations
For additional information, the IRS provides a Donor's Guide to Car Donations which sets forth the manner in which the IRS requires you to determine the value of your donated property.
Vehicle Donations and The New Tax Law