In order for you to financially benefit from making a vehicle donation to gain a tax deduction, first you’ll need to be a taxpayer who itemizes deductions on your federal and state income tax returns or 1040A.
The current IRS guidelines state, a taxpayer could claim up to $500 for any donated vehicle/vessel accompanied by a receipt from us, even if the vehicle is sold for less than that amount.
A taxpayer could claim the amount the donated vehicle sold for by us, accompanied by IRS form 1098C, indicating the amount sold and other pertinent info from the donor. If sold for more than $5,000 then IRS form 8283 will be required as well.
A taxpayer could claim fair market value (usually determined by an evaluation guide, like KBB.com) if we materially improve the vehicle and accompanied by IRS form 1098C. If determined value is more than $5,000 then IRS tax form 8283 along with a third party appraisal will be required as well.
For more information on tax write-offs, read the IRS information on vehicle donations. You may also search our car donation by state directory where you will find specific information about the tax benefits of car donation. All donors should realize that everyone’s tax situation is different, so we recommend consulting with your tax professional to determine how you can benefit from vehicle donation.
Tax Information Resources
For all tax information: www.irs.gov
Form 1040: http://www.irs.gov/pub/irs-pdf/f1040sa.pdf
Form 8453: www.irs.gov/pub/irs-pdf/f8453.pdf
Form 1098-c: http://www.irs.gov/pub/irs-pdf/f1098c.pdf
Form 8283: http://www.irs.gov/pub/irs-pdf /f8283.pdf
IRS guide to car donations: www.irs.gov/pub/irs-pdf/p4303.pdf