Donate Car Tax Deductible

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Tax Information


Tax Deduction FAQs
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1. What needs to be on a car donation tax receipt?

2. When will I receive my tax receipt?

3. How big of a tax deduction will I get from my car donation?

4. What are some of the IRS vehicle donation tax deduction guidelines     that I should be aware of?

5. Is the Fair Market Value the same as the tax deduction I will receive?

6. I would like to donate my car and receive a tax benefit but I do not     itemize on my tax returns. Will I still receive a tax benefit?

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Tax Deduction FAQs

1. What needs to be on a car donation tax receipt?
A vehicle tax receipt must have: the charity's name; its Federal Tax ID number; the donor's name; date of donation; and, the year, make and model of the donated vehicle. It is important to note that only 501 (c)(3) charities can give official tax receipts.
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2. When will I receive my tax receipt?
VCO will usually give you a tax receipt at the pickup meeting or mail it within 30 days of selling your donation. It usually take 30-60 days to sell a donated vehicle from the time it is picked up.
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3. How big of a tax deduction will I get from my car donation?
First, you must itemize deductions on your IRS tax return in order to receive a tax deduction for your donated vehicle. Second, you determine the amount of the tax deduction based on the fair market value of your donation. If a vehicle donation is worth less than $5,000 the IRS allows the donor to determine the car's Fair Market Value. It is important to note how the IRS defines Fair Market Value as: "the price a willing buyer would pay a willing seller when neither has to buy or sell, and both are aware of the sale conditions". VCO will auction most vehicles to buyers hence the Fair Market Value could be the price your donated vehicle sold for, commonly known as the "Gross Sale Amount" paid by the highest bidder, and this amount is reported to you on the 1098-C form we will send to you.
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4. What are some of the IRS vehicle donation tax reduction guidelines that I should be aware of?
You should be aware that the donor, not the charity, is responsible for determining Fair Market Value of the vehicle donation, taking into full consideration its condition at the time of donation. For vehicles used by the needy with a Fair Market Value of more than $5,000.00, the IRS requires a third party appraisal company to appraise the vehicle, which VCO will provide to the donor.
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5. Is the Fair Market Value the same as the tax deduction I will receive?
No. Your charitable contribution will reduce your taxable income, which is not the same amount as your tax benefit.
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6. I would like to donate my car and receive a tax benefit but I do not itemize on my tax returns. Will I still receive a tax benefit?
No. In order to receive a tax benefit a donor must itemize your deductions on your tax returns to receive a tax deduction.
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Disclaimer: Donors must rely on their own tax counsel for personal tax advice. Auto Donation Program staff do not provide tax advice.

IRS links
The IRS website links for fast access to IRS regulations concerning vehicle and real property donations. Adobe Acrobat Reader required - download Acrobat here.

For information about determining the Fair Market Value of a vehicle you can read Publication 526 Charitable Contributions here.
Another IRS publication "Publication 561. Determining the Value of Donated Property" can be read here .

Form 8283, IRS tax form for filing taxes can be found here. For instructions on this form go here.