What Is Your Vehicle Donation Tax Deduction?
To thank you for donating your vehicle to help save lives, Breast Cancer Car Donations makes it easy for you to get the maximum tax deduction for your generous donation.
To claim your tax deduction, you must itemize your deductions on your tax return. The charitable deduction applies for the tax year during which you submitted your online donation form, even if the vehicle isn’t picked up until after the start of the following year. After selling your donated vehicle at the highest price, we send you a 100 percent tax-deductible receipt indicating the sale price of your vehicle.
- If your vehicle sells for less than $500, you can claim the selling price or the vehicle’s fair market value up to $500. Calculate the fair market value by using a reputable used-car price guide and/or checking prices online for vehicles of the same make, model, year and condition.
- If the vehicle sells for more than $500, you can claim only the exact amount for which it sold, even if the fair market value is greater than the selling price.
How to Claim Your Deduction
To claim a vehicle donation tax deduction, you must have documentation. Breast Cancer Car Donations sends you a written acknowledgment that includes your name, a description of the vehicle, the VIN (vehicle identification number), the donation date, the selling price of your vehicle, and a statement that no goods or services were received in return for your donation.
Various tax forms are required based on the value of your donation.
- If you’re claiming a deduction up to $500, you must keep our written acknowledgement with your tax paperwork.
- If you’re claiming a deduction greater than $500, you must attach our written acknowledgement or completed Tax Form 1098-C (Contributions of Motor Vehicles, Boats, and Airplanes) to your tax return. Plus, you are required to complete Section A of Tax Form 8283 (Noncash Charitable Contributions).
- If you’re claiming a deduction greater than $5,000, you must attach completed Section B of Tax Form 8283 (Noncash Charitable Contributions). You may be required to obtain a written appraisal of your vehicle, as well.
We recommend that you consult a tax advisor or the IRS for more specific information about charitable contributions.
Review the IRS Publication: A Donor’s Guide to Car Donations
Questions? Contact us or call 866-540-5069 for help with tax deduction issues.
Donating our vehicle was one of the easiest and most positive experiences. Thank you for helping us.