Can I Get a Tax Break for Donating My Car?

Can I Get a Tax Break for Donating My Car?

Yes — But Only Under Certain Conditions

There is no better way to donate than giving away an old vehicle to a charitable institution and then obtaining a handsome tax deduction in the process. So, for those who are asking, “Can I get a tax break for donating my car?” the answer is yes – but only under certain conditions. Here’s how it is done.

 

Car Donations Eligible for Tax Breaks

Car donations given to qualified charities are tax-deductible expenditures. Thus, they can be used to reduce your tax bill.

However, not every car donation is eligible for tax deduction. Only donations given to IRS-accredited nonprofit organizations are eligible for tax benefits. Hence, you must be sure that the organization you’re donating your car to is one that’s listed on the IRS list of nonprofits.

It is also imperative to itemize your tax deductions if you wish to claim tax deductions for charitable donations.

You must also be able to authenticate the fair market value of the vehicle you’re donating. You’ll need a written acknowledgment from the charitable institution or nonprofit organization concerning the type of donation you’ve made. You should be able to complete form 8283 and collate this along with your tax return if your donation was worth over $500.

 

How to Obtain a Tax Break for Car Donations

Below are some of the important things you need to remember when donating a car.

  • Itemize your donation because you will need that when filling out form 8283.
  • Remember the condition of the car and arrive at a value.
  • Have your charity organization acknowledged the car you donated to them and store your receipt for validation of the price of the car.
  • Take photos of your car donation because having a photo of what you gave away can be useful particularly if you’re donating a lot of items. Taking a photo is not a necessity, but it will not hurt in case your return is audited.
  • Check the receipt to verify the donation. Have it signed by an official of the charity organization when you hand over the item you’re This way you can be sure that the receipt is correct and includes all the required information.
  • Obtain a written appraisal of the donated item or vehicle if it’s worth over $500.
  • Secure a documentation of your car donation. The documentation you obtain from the charity organization should include your name, the date your donation was made, the vehicle identification number, and a statement that describes the products and services you received, if any.

You’re Sure to Get Maximized Tax Deductions with Us

If you donate your vehicle to Breast Cancer Car Donations to support the fight against this deadly disease and to help its victims, you can be sure that you will get the highest possible tax deduction on the vehicle you’re donating.

We operate vehicle donations on behalf of our IRS-certified 501(c)3 nonprofit partners — the American Breast Cancer Foundation (ABCF) and Women Involved in Nurturing, Giving, Sharing, Inc. (WINGS). We generate funds for their programs that provide free and accessible comprehensive breast health services across the country. These services are geared towards breast cancer prevention, early detection, treatment and/or cure.

When you donate your car to us, we take it to the best auction house within our network so that it can be sold at its highest possible price Visit our FAQs page to know more about Breast Cancer Car Donations. If you’re ready to donate, fill out our online donation page or call us at 866-540-5069. Donate a car or any other vehicle type to us and get a substantial tax break!

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