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Tax Questions
What are the tax benefits of donating my vehicle?
Habitat for Humanity International is a 501(c) (3) nonprofit organization.
If you itemize deductions on your income tax return, it may be possible to claim a deduction for your car donation.
In 2005 the IRS changed the laws related to tax deductibility of vehicle donations because of exaggerated deductions based on inflated book values (book values tend to become less reliable as a vehicle ages). Under the new rules, the deductible amount of your donation is directly related to the selling price of your vehicle.
If your vehicle sells for less than $500 you can take a deduction equal to the 'fair market value' of your donation up to $500. Fair Market Value is loosely explained as the "Blue Book" or "Guide Book" value of your vehicle. See the links below for Kelley Blue Book, NADA Guides or Edmunds.
If your vehicle sells for more than $500 your may deduct only the full selling price of the vehicle.
The charity is required by IRS to send to the donor a contemporaneous written acknowledgement (receipt) within 30 days of sale. This Receipt must include the following.
IRS Publication 4303, A Donor's Guide to Car Donations (PDF)
Publication 526, Charitable Contributions (PDF)
Publication 561, Determining the Value of Donated Property (PDF)
Form 8283 Noncash Charitable Contributions (PDF)
Instructions for Form 8283, Noncash Charitable Contributions (PDF)
Links to Valuation
Kelley Blue Book
www.kbb.com
Edmunds
www.edmunds.com
NADA Guides
www.nadaguides.com
Habitat for Humanity International is a 501(c) (3) nonprofit organization.
If you itemize deductions on your income tax return, it may be possible to claim a deduction for your car donation.
In 2005 the IRS changed the laws related to tax deductibility of vehicle donations because of exaggerated deductions based on inflated book values (book values tend to become less reliable as a vehicle ages). Under the new rules, the deductible amount of your donation is directly related to the selling price of your vehicle.
If your vehicle sells for less than $500 you can take a deduction equal to the 'fair market value' of your donation up to $500. Fair Market Value is loosely explained as the "Blue Book" or "Guide Book" value of your vehicle. See the links below for Kelley Blue Book, NADA Guides or Edmunds.
If your vehicle sells for more than $500 your may deduct only the full selling price of the vehicle.
The charity is required by IRS to send to the donor a contemporaneous written acknowledgement (receipt) within 30 days of sale. This Receipt must include the following.
- The gross selling price of the vehicle (if sold for greater than $500)
- Year, Make, Model and VIN Information
- A statement that the vehicle was sold at arm's length between two unrelated parties
- And a statement that no goods or services were received in return for your contribution.
IRS Publication 4303, A Donor's Guide to Car Donations (PDF)
Publication 526, Charitable Contributions (PDF)
Publication 561, Determining the Value of Donated Property (PDF)
Form 8283 Noncash Charitable Contributions (PDF)
Instructions for Form 8283, Noncash Charitable Contributions (PDF)
Links to Valuation
Kelley Blue Book
www.kbb.com
Edmunds
www.edmunds.com
NADA Guides
www.nadaguides.com