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Tax Deduction Info for Car Donations -- Made Simple!
Please remember that everyone's tax situation is different, so consult with your tax professional to determine how you can benefit.
#1: Verify that the Charity you choose is an IRS registered Nonprofit
If you want to claim a deduction for donating a car to charity, then you should check to
ensure that the charity is a qualified nonprofit organization. Otherwise, your donation will not
be tax deductible. All proceeds from cars donated to Donate a Car 2 Charity benefit Activated Ministries, an IRS registered 501(c)3 nonprofit
organization. We are a Christian charity dedicated to helping those in need, sharing God's Word
with others. Read more.
#2: Minimum $500 Tax Deduction when you Donate a Car
The IRS allows a donor to claim the value of your donated vehicle up to $500 as the minimum deduction you can claim. In other words, when you donate your car to Donate a Car 2 Charity you will receive an initial receipt that entitles you to claim the minimum $500 tax deduction.
#3: Qualify for a Greater Tax Deduction for Higher Value Vehicles
Many donated vehicles will qualify for a higher tax deduction if the sale value of the vehicle is over $500. Most donated cars are sold at auction, and once the vehicle is sold the donor will receive an additional tax receipt which will be equivalent to the gross proceeds from the sale.
#4: We Provide all Necessary Tax Deduction Receipts and IRS Forms
Donate a Car 2 Charity provides a written acknowledgment of your car donation as soon as you
donate your car -- either by using our online car donation form or by calling one of our
operators. If your donated car qualifies for a deduction of more than $500, we will mail
you an additional receipt as soon as the car is sold so that you can claim the maximum deduction
for your car donation.
#5: Some Vehicle Donations Qualify for a "Fair Market Value" Deduction
The IRS allows a donor to claim the "Fair Market Value" of their vehicle donation if:
The vehicle is used by the charity for a significant period of time for their charitable purpose.
- or -
The vehicle is either donated or sold at a price significantly below market value to a needy, low income family or individual.
Donate a Car 2 Charity has launched the Cars 2 Care program to provide good quality vehicles to needy individuals or families. To see if your vehicle donation qualifies for the Cars 2 Care program, please call us at 1-877-505-5775.