Getting a Tax Deduction for your Car Donation

Here are a few important points to remember about claiming a tax deduction when you donate a car, boat or RV. In order to benefit from the tax write-off for a vehicle donation, you must itemize your deductions. You will be able to claim a deduction for the value of your vehicle up to $500 with a simple receipt from the charity you donate the vehicle to stating that the vehicle was donated. If your donated car sells for more than $500, then you will receive a second receipt from the car donation charity with the sale value of your vehicle. The charity must provide this receipt with 30 days of the sale of your vehicle. You can claim the full sale value of your car donation. No charity can predict what a vehicle will sell for at the time of auction -- but they can often give you a ball-park idea of what to expect. There are no guarantees, though, for what any particular vehicle will sell for when it goes on sale on the auction lot -- but generally newer vehicles (within 7 years of age), luxury cars, SUVs and pickup trucks will bring a good price at auction, even if the vehicle has been in an accident. If the charity you donate the vehicle to will use the car you donate for their charitable purposes, or if they sell it at a reduced price to a low income family, or if the charity makes significant repair before selling the vehicle, then you can claim the Fair Market Value of your vehicle as a tax deduction. If the FMV is over $5000 you will need to get an appraisal of your vehicle and fill out the 8283 IRS form, which must be signed by the appraiser and the charity that receives the donation. Remember that if you call a car donation charity before midnight on December 31st of 2005 then you will still be able to claim your tax deduction for the 2005 tax year, even if it takes a week or two to pick up the car and get it sold. The date you call and pledge your donation is the date that counts as being the date you donated your car. Thank you for considering a car donation to charity! -- You can make a difference in someone's life!