Used Car Write-off Values

The federal government permits taxpayers who elect to itemize their deductions to write off donations to charity. Donations can include used cars, but the Internal Revenue Service (IRS) sets strict rules on how much can be deducted.

Types

The amount that you can deduct for your used car donation depends on how the charity uses the car. If the charity sells the car, you can write off only the amount paid by the buyer. If the charity uses the car for charitable purposes, you can deduct the car's fair market value.

Documentation

In order to support your deduction, you must get a receipt from the charity, documenting the vehicle that was donated and how the charity will use it. If the charity sells the vehicle, the documentation must state the selling price. If the charity uses the vehicle, the documentation must state the intended use and expected duration of usage.

Warning

Only donations made to qualifying charities can count for tax write-off purposes. You can check the IRS's online database to determine if a particular organization qualifies.

References

• Internal Revenue Service: A Donor's Guide to Vehicle Donations
• Bankrate: Donating a Vehicle to Charity