Ways to Maximize Your Car Donation Itemized Tax Deduction Value
The Instant Car Donation Advantage
Donating your car is an excellent way to get a federal itemize tax deduction. We would like to help guide you through the process and assist you with recieving the maximum allowable deduction for your car. The first step is to follow our easy donation process to help a local charity you care about. We will ensure every charity you can donate to on our site is eligable for tax deductions and an 501(c)(3) organizaion.
IRS Donation Classifications
Since 2005 the IRS has made it has been easier to determine the deduction value. When you donate your car it will be sold and the proceeds will go to the charity you selected. We will send you a reciept within a month of your vehicle being sold. In order to increase the sale price, and thus your tax deduction, you may wish to clean your car before pickup and have a clean title ready.
- If the sale price on your reciept is less than $500.00 you may take a deduction equal to the fair market value of your vehicle, found via a serviced such as Kelley Blue Book.
- If the sale is between $500.00 and $5,000 you may claim the exact sale price, and must fill out Section A of IRS Form 8283.
- If the sale price is over $5,000 you may need an independent apprasial, and fill out Section B of IRS Form 8283.