Tax deduction information
In 2005 the IRS changed the laws related to tax deductibility of vehicle donations. Under the new rules, the deductible amount of your donation is directly related to the selling price of your vehicle.
If your vehicle sells for less than $500 you can take a deduction equal to the 'fair market value' of your donation up to $500. Fair Market Value is loosely explained as the "Blue Book" or "Guide Book" value of your vehicle. (for the most part this value is at least $500 for whole vehicles). See the links below for Kelley Blue Book, NADA Guides or Edmunds.
If your vehicle sells for more than $500 your may deduct only the full selling price of the vehicle.
The charity is required by IRS to send to the donor a contemporaneous written acknowledgement (receipt) within 30 days of sale. This Receipt must include the following.
- The gross selling price of the vehicle (if sold for greater than $500)
- Year, Make, Model and VIN Information
- A statement that the vehicle was sold at arms length between two unrelated parties
- And a statement that no goods or services were received in return for your contribution.
If you have additional question about deductions and IRS Regulations the following links may be of assistance
*****Contact your tax advisor for the actual tax benefit for your donation*****
Links to Fair market value guides
Kelley Blue Book