IRS Information About the Donation of Cars
Car donations help a charity by providing revenue after the sale of the item or by providing transportation. A car donation may be tax deductible provided you conform to IRS rules.
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Considerations
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A car donor may not use his car donation to write off more than 50 percent of his adjusted gross income, the amount of taxable income after deductions have been factored in. This includes any other charitable deductions made during the year.
Amount
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The deduction claimed for a donated vehicle may not exceed the fair market value of the car. This is determined by how much the car can reasonably be sold for at the time of donation. Any extenuating circumstances, such as major repairs needed, should be taken into account.
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Proof
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The donor must get a signed statement from someone at the charity verifying the donation if the amount being deducted is more than $250. The statement should not list the value of the car but should include an accurate description of the vehicle donated and whether or not the donor received any tangible goods or services from the charity in exchange for his donation. If so, then there should also be a good faith estimate for those goods and services.
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