Because everyone’s tax situation is unique, we encourage you to consult with the IRS or a tax professional to determine your tax benefit.
Here are some guidelines:
Your tax deduction will depend, in most cases, on how much your vehicle sells for.
- If your vehicle sells for under $500, you can claim the fair market value up to $500.00 without any additional paperwork besides the receipt letter we provide with your initial donation packet. According to the IRS it is up to you to determine the fair market value of your vehicle if it sells for an amount up to $500. We will not need your social security number.
- If your vehicle sells for more than $500, the IRS says you may write off the full sales price of the vehicle. If this is the case you will receive a sales acknowledgement letter from us stating the sales price of your vehicle. This letter is the equivalent of the IRS form 1098c. You will need this letter to file with your taxes and we will need you to contact us with your social security number, so we may file a 1098c with the IRS, confirming your deduction.
If you would like to learn more about how your vehicle donation may affect your tax status and deduction please visit www.irs.gov and search for “car donation”. The IRS has numerous helpful publications.
Beware of vehicle donation companies that offer something like cash or a vacation certificate, in return for your donated vehicle, as this may reduce your tax deduction, and in some cases even cause you a tax liability. This may also reduce the amount of money your charity receives.