Car Donation Tax Deduction
How To Get The Maximum Tax Benefit Out of Your Vehicle Donation
Hop4Kids makes it easy. Donating your car or vehicle to charity can be a great way to get a 2019 federal tax deduction (state income tax deductibility depends on state law). If you would like to help your local Hop4Kids and get the maximum tax deduction, then you’re already almost done. It’s as simple as filling out the little form to the right or calling 1-855-500-7433.
How Car Donation Tax Deduction Works
Before January 2005, the IRS was allowing people who donated to a qualified car donation program to take a tax deduction based on their vehicle’s market value. It’s no matter how much or how little the vehicle sold for. Determining the market value of a donated vehicle is often quite difficult and time-consuming, which decided the amount of the tax deduction confusing. Fortunately, as a result of the new tax law that went into effect in January 2005. The IRS has taken the guesswork out of determining the value of your donated car, truck, RV, boat or another vehicle.
The IRS Allows The Taxpayer To Claim A Charitable Tax Deduction As Follows:
- We make it easy to get the maximum tax deduction for your vehicle donation! Simply fill out the quick form to the right (or call 1-855-500-7433) and we take care of the rest. We picked the car up, sold, and proceeds benefit your local Make-A-Wish®, but you also get a 100% deductible receipt.
- If the donated vehicle is sold for less than $500. You can claim the fair market value of your vehicle up to $500. Or the amount it is sold for if less than fair market value.
- If the donated vehicle sells for more than $500, you can claim the exact amount for which the vehicle is sold.
For any vehicle sold for more than $500, the exact amount it is sold for will stated on your notification mailed to you. Which in turn will be your charitable tax deduction. For additional information, the IRS provides A Donor’s Guide to Car Donations (Publication 4303 linked below). Details the determination of the value of your donated vehicle. As always, we help people donate their cars every day, and we would be happy to help you do the same. Feel free to call us at 1-855-500-7433 with any questions you might have and one of our representatives will help you.
Frequently Asked Car Donation Tax Questions
YES! As stated above.
YES! If a charity provides a commodity, like a vacation package, for example, in exchange for a car or vehicle donation, then the tax receipt from that charity must state the fair market value of that commodity and the fair market value of that commodity must be subtracted from the value of the car donation.
For example: If your vehicle sells for $1,000.00 at auction and your vacation package that you receive has a fair market value of $400.00, you can only deduct $600.00. That’s $1,000.00 for the donated car less $400.00 for the vacation package resulting in a maximum deduction of $600.00 ($1000.00 – $400.00 = $600.00)
We certainly do not want donors to be shocked by receiving a tax letter that states they have to subtract the fair market value of the vacation from the value of their vehicle.
Can’t Find What You Were Looking For?
Email Us @ info@hop4kids.org
Latest IRS Publications Concerning Vehicle Donations And Deductions
- IRS Pub. 526 – Charitable Contributions – An excerpt regarding non-cash charitable contributions.
- IRS Pub. 561 – Determining the Value of Donated Property – An excerpt regarding fair market value.
- IRS Pub. 4303 – A Donor’s Guide to Car Donation – An excerpt regarding new tax law information.
We’re Ready To Help, And It Couldn’t Be Easier
We work hard to get you the maximum tax return for your vehicle donation. Feel free to call us at 1-855-500-7433 with any questions. You might have, and one of our representatives will help you.