Tax Information

New Vehicle Donation Tax Rules - Effective January 1, 2005

IRS Car Donation Tax Tip

IRS Notice 2005-44 - Charitable Contributions of Certain Motor Vehicles, Boats, and Airplanes

Publication 4303, A Donor's Guide to Car Donations provides guidelines for individuals who donate their cars.

Fair Market Value & Publication 526

"Publication 526 - Charitable Contributions" provides information on determining the "fair market value" of a vehicle at http://www.irs.gov/pub/irs-pdf/p526.pdf.  You can read the entire publication, or you can start at page 7 of the document.  Be sure to read the section entitled "Contribution of Property", and a section called "Determining Fair Market Value".  There is also another section called "Cars, boats, and aircraft" which provides very specific information about those types of donations.

Fair Market Value & Publication 561

Also pertinent is "Publication 561 - Determining the Value of Donated Property", available at http://www.irs.gov/pub/irs-pdf/p561.pdf.

IRS Tax Form for filing taxes -- Form 8283

If the tax deduction you plan to take for your vehicle donation is more than $500, or if the total of your deductions for all of your non-cash gifts is over $500, you will need to file Form 8283 with your tax return.  You can find this form at the IRS web page http://www.irs.gov/pub/irs-pdf/f8283.pdf.  The instructions for this form can be found at http://www.irs.gov/pub/irs-pdf/i8283.pdf.

If the links do not work by clicking on them, try pasting them into your browser.

Link to IRS Website

Here is the link for the IRS website: http://www.irs.gov/.

Visit the IRS Contact Page.

IRS Publications and Adobe Acrobat Reader

The publications on the IRS website are in a viewable and printable format that requires Adobe Acrobat Reader to display and print.  If you do not have this software, you can download and use it for free at the following link: http://www.adobe.com/products/acrobat/readstep.html.

 

DONATE YOUR VEHICLE
Tax Deductible
 Call (256) 551-1610

 


Vehicle Donation Checklist

Make sure the charity is qualified by the IRS to receive car donations.  The charitable organization must have tax-exempt status under Section 501(c)(3) of the Internal Revenue Code.  If you're concerned, ask the organization for a copy of its IRS Determination Letter.  (Churches don't need one because they are not required to apply for tax-exempt status.)

Find out if the charity actually plans to give the car to someone in need, or otherwise how the charity actually benefits financially from the car. (more on car donations)

Check out the charity with the Better Business Bureau (in north Alabama call: 533-1640, or go to www.huntsville.bbb.org)

 Make sure the title of the car is actually transferred to the charity's name and keep a copy of this record.

For tax records, take a photo of the car and keep copies of current classified ads or car value guide estimates for similar vehicles. (For more deductibility information, get a copy of IRS Publication 561, Determining the Value of Donated Property.)

If your deduction is over $500, be sure that you receive copies B & C of IRS Form 1098-C from the donee.  Copy B must be filed with your federal income tax return, in order to claim a deduction for the donation. 

If your deduction is at least $250, but not more than $500, be sure to receive a contemporaneous written acknowledgment of the contribution from the donee organization.

  If you intend to deduct more than $5,000, you must get a written professional appraisal.

The information on this page/website is based on our interpretation of current IRS rules, and is not intended as personal tax advice.  You should consult the IRS and a professional income tax advisor for any advice on the documentation and tax deductibility of any donation.  

 

Counseling Services   Programs & Resources    Agency Profile   Special Events
Needs & Volunteer Opportunities   Both Parents Program   Employee Assistance Program   Kids On The Block       
         Homicide Survivors Assistance Center   Caring Cars  Contact Us

© 2007 Family Services Center - Huntsville, AL