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"

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If you donated a car or other vehicle to a qualified charitable organization in 2006 and intend to claim a deduction you should review the special rules that apply to vehicle donations. You can deduct contributions to a charity only if you itemize deductions on Schedule A of Form 1040.

continue reading "Car Donation 2007 Tax Tip"

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In the US it’s possible to donate a vehicle (usually a car, but it can also be a truck, boat, RV or any other kind of transportation) to certain charities, and in return you would be able to claim a tax deduction on your income tax return. If the car donation is accepted, the charity takes care of any towing expenses and provides you with the necessary documents for tax purposes. If a charity does not provide concise answers about where the proceeds from donations will go, you might want to consider making your car donation to another charity.

continue reading "Car Donation News and Programs"

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