Your tax deduction depends on how a charity uses your vehicle. Typically, the allowable deduction is limited to the amount of the car’s sale. Charities will be required to provide written notification of the sale amount within 30 days. If you do not receive the acknowledgement from the charity, you will not be able to deduct the donation.
However, if the charity uses the vehicle as part of its programs, you can still deduct the fair market value. Fair market value (FMV) is the price for which the property would sell on the open market – this is not the “blue book” value. You need to take into account your car’s physical condition, mileage, and features, as well as the area used-car market.

continue reading "Determining Your Tax Deduction from an Auto Donation"