Vehicle Donations Tax Deductions

Tax Deduction 

Charity Help USA is a part of the Charity Funding Services family which is a 501(c)(3) nonprofit organization. It has been established to benefit charities, nonprofits and foundations locally, nationwide and worldwide through vehicle donations and real estate donations.

How do I obtain a tax deduction?

You can donate a car, RV, motorhome, travel trailer, fifth wheel, boat, vessel or real estate. Your donation to charity is completely tax deductible. More questions about the donation process, check out our FAQ page.

How much would I get? 

As a general rule, you will be able to deduct the full value of what your vehicle gets sold for. However there is a couple of situations where this regulation would change. For example if your  vehicle sells for less than $500.00, then you can claim up to $500 on your tax deduction. Other way is that if your donated vehicle sells for more than $500.00, then  you will be able to claim the full amount for which your donation got sold for. In other cases if your car donation, or vehicle donation has special characteristics, you have the possibility to deduct the fair market value of the vehicle, which also applies mainly with real estate donations and vessel donations. Check IRS page.

Example

If your vehicle gets sold for $4,000.00 as a result the donor can deduct $4,000. 00.

Your Donation, May Apply For Appraised Value and Significant Material Improvements

Have in consideration that in case your donation is in condition to be used, the charity can provide help to a disadvantaged person, then the donor will get a written acknowledgement that will certify, the intended use and duration of use or the material improvements to be made so,  the asset will not be transferred in exchange for money, other property, or services, Also if the vehicle gets “significant material improvements“, consequently the donor may deduct the full “fair market value” of the vehicle.

If the charity uses the donated asset for purposes like providing a donated vehicle to a disadvantaged person or make material improvements to it.

Know your rights and responsibilities as a donor. In addition, we highly recommend you also thoroughly read the following two IRS publication articles:

  1. IRS Publication 4303, “Determining the Value of your Car” click on this link: https://www.irs.gov/pub/irs-pdf/p4303.pdf
  2. IRS Publication p561, Regarding “Fair Market Value” (FMV)click on this link: https://www.irs.gov/pub/irs-pdf/p561.pdf

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