The IRS allows a donor to claim a tax deduction of $500 for donating your vehicle. You will receive your tax-deductible receipt in the mail within 2-4 weeks of donating. You’ll also be given a temporary Vehicle Donation Receipt at the time of vehicle pickup.
On January 1, 2005 the IRS changed the tax law governing motor vehicle, boat, and airplane donations. As of January 1, 2005 you are able to deduct the gross sales price the charity receives on the sale of your car, truck, boat, RV, snowmobile or airplane. Under the current tax law if your car sells for more than $500, your car donation tax deduction will be equal to the gross sales price received. The gross sales price is the highest price received before any deductions for expenses. For cars which sell for over $500 the donor will receive an official letter from our charitable partner which includes the necessary information required by the IRS. The official letter will include; sale price of the vehicle, name of donor, address of donor, name of charity, address of charity, tax ID #, description of vehicle, VIN # of vehicle, date of donation, and sale date of the vehicle. Simply, include a copy of this official letter with your tax return. If the car you donate is sold for $500 or less the current IRS tax law stipulates that you can deduct the fair market value of the vehicle up to a maximum of $500. The vast majority of donors whose vehicles sell for $500 or less will be entitled to a $500 deduction.
Please note that all vehicles donated through CHARITYVEHICLE.ORG are sold for charities and the donor will receive either the "sold for over $500” letter or "sold for $500” official letter detailed above. The official letter will include; sale price of the vehicle, name of donor, address of donor, name of charity, address of charity, tax ID #, description of vehicle, VIN # of vehicle, date of donation, and sale date of the vehicle.
Please note that all vehicles are sold for the benefit of the 501(c)(3) non-profit organizations. The charities do not take possession of any vehicle.
For a more detailed overview the IRS publishes a "Donor's Guide to Car Donation" on their website. Please click the button below for further information.