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If you itemize your deductions you may be eligible claim a tax deduction for your donated vehicle. In 2005, the IRS changed the laws related to tax deductibility of car donations because of exaggerated deductions based on inflated book values. Under the new rules, the deductible amount of your vehicle donation is directly related to the selling price of your vehicle.
If your vehicle sells for more than $500, you are entitled to receive a tax deduction equal to the sales price of your donated vehicle. If the vehicle sells for less than $500, you can deduct the fair market value up to $500. Fair Market Value is loosely explained as the "Guide Book" value of your vehicle. You will receive a tax receipt within 30 days of the sale. If you need another copy of the receipt please call or email us and we will be happy to provide you with a duplicate.
If your vehicle sells for more than $5,000 you will no longer be required to have an appraisal of your vehicle. The amount you may claim as a deduction will be the gross sale proceeds of the vehicle.
We provide you a with written acknowledgment (a Tax Receipt or IRS Form 1098C) within 30 days of selling the vehicle, stating either the amount the vehicle sold for (if over $500), or that the vehicle is eligible for the fair market value deduction (if it sold for less than $500). If itemizing deductions, donors must file the Tax Receipt or IRS Form 1098C with their tax return.
We file Form 1098C with the IRS for all vehicle donations, including the donor's Social Security Number and Vehicle Identification Number (VIN).
Car Talk Vehicle Donation Services gives no tax advice. It is solely your responsibility to report vehicle value and your tax status. More information about deducting vehicle donations is available from the IRS at http://www.irs.gov.