Thursday, March 19, 2009
Thursday, March 5, 2009
Tax Information
As a vehicle donor, you will be eligible for a tax deduction in the amount that your donor charity is able to sell you car for, assuming that is more than $500.
If your charity sells your car for less than $500, you can deduct the fair market value of your old car.
The charity is responsible for providing you with paperwork documenting the sale of your car.
More information is available from the IRS.
A few things to know
- Donating your car should cost you nothing. Most charities that accept vehicle donations will arrange to have your car towed away for you at no cost.
- In most cases, your car doesn't have to be in running condition or to be able to pass your state's emissions standards.
- To take your tax deduction, you'll usually need written acknowledgement of the sale of your car within 30 days after it's sold by the charity you donated to.
- Check with your state's department of motor vehicles and the charity you're donating to for the paperwork that's necessary in your state.
Fair Market Value
If you're eligible to deduct your old car's fair market value, you can refer to resources such as the Kelly Blue Book to determine the value.
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