Everything you need to know about charity auto donation tax deductions.
Actually, it’s quite simple. Donate your automobile and get a tax deduction.
Here’s how it works:
When you donate your auto, the IRS will allow you to claim a tax deduction for
A. The fair market value of your car up to $500. Or
B. If your vehicle sells for over $500 you can claim a deduction for the amount we sell it for.
That's right. If we sell your old car for $1500 dollars you will receive a $1500 tax deductible receipt.
You should receive your tax deductible receipt around 2 weeks after you’ve made your donation.
As a recognized non-profit charity, when you donate your automobile to Donate Autos it is fully tax deductible.
Could anything be more of a win-win situation?
When you donate your auto you save on taxes, and help us do great things for the kids!
History of Auto Donations Tax Deduction
This is how the used automobile donation tax credit used to work: Giving away your used automobile to a charity used to be straightforward. You could donate your auto and claim the auto for its fair market value. Typically, you'd refer to the Kelley Blue Book to get an idea of the donated car's value, give your car to your favorite nonprofit and then drive off with a tax break equal to that valuation amount. That is now no more.
In 2005 a new auto tax deduction law was passed. Since 2005, deduction amounts for some donated automobiles have been dramatically changed. The precise tax break depends on how Donate Autos charity uses the automobile.
In most instances, a taxpayer must take into account a $500 threshold. When a charity sells a donated vehicle just how much a taxpayer can deduct depends on the amount the sale nets.
For example, you donate your old station wagon that's worth $1,000. Under the old rules, that would be the amount you could deduct as a tax credit. But now, if the charity is only able to sell your donation for $800, your tax deduction is limited to the lower sales price.
The timing of your donation is critical. All automobile gifts must be made in the tax year for which you are filing the return. To claim a donated automobile on your current tax return, you must have given the autos to a charity by last Dec. 31.
Get your auto tax deduction now! We’ll send you a tax deduction for donated automobiles shortly after you’ve made your donation.
We work hard to get you the highest federal tax deduction for donating automobile. The tax benefit donate automobile will be mailed around two weeks from when you car was picked up. Get your automobile donation for tax exemption today!