2014 Car Donation Tax Deduction - How to Get The Maximum Tax Benefit Out of Your Vehicle Donation
Donating your car or vehicle to charity can be a great way to get a tax deduction, and Wheels For Wishes makes it easy. If you would like to help your local Make-A-Wish® and get the maximum tax deduction, then you're already almost done. It's as simple as filling out the little form to the right or calling 1-877-431-9474. We make the process easy, and you get the most good (and highest tax deduction) for your car. Not only that, but you are also helping a local child's wish come true.
how car donation tax deduction works
Prior to January 2005, the IRS was allowing people who donated to a qualified car donation program to take a tax deduction based on their vehicle's market value no matter how much or how little the vehicle sold for. Determining the market value of a donated vehicle is often quite difficult and time-consuming, which made determination of the amount of the tax deduction confusing. Fortunately, as a result of the new tax law that went into effect in January 2005, the IRS has taken the guesswork out of determining the value of your donated car, truck, RV, boat or other vehicle.
The IRS allows the taxpayer to claim a charitable tax deduction as follows:
- We make it easy to get the maximum tax deduction for your vehicle donation! Simply filling out the quick form to the right (or call 1-877-431-9474) and we take care of the rest. Your vehicle is picked up, sold, and proceeds benefit your local Make-A-Wish®, but you also get a 100% deductible receipt.
- If the donated vehicle is sold for less than $500, you can claim the fair market value of your vehicle up to $500 or the amount it is sold for if less than fair market value.
- If the donated vehicle sells for more than $500, you can claim the exact amount for which the vehicle is sold.
- In either case, you will receive a 100% tax deductible receipt at the time that your vehicle is sold, stating the amount of the sale.
For any vehicle sold for more than $500, the exact amount it is sold for will be stated on your notification mailed to you, which in turn will be your charitable tax deduction. For additional information, the IRS provides A Donor's Guide to Car Donations (Publication 4303 linked below), which details the determination of the value of your donated vehicle. As always, we help people donate their cars every day, and we would be happy to help you do the same. Feel free to call us at 1-877-431-9474 with any questions you might have and one of our representatives will help you.
Frequently Asked Car Donation Tax Questions
Latest IRS Publications Concerning Vehicle Donations And Deductions
- IRS Pub. 526 - Charitable Contributions - An excerpt regarding non-cash charitable contributions
- IRS Pub. 561 - Determining the Value of Donated Property - An excerpt regarding fair market value
- IRS Pub. 4303 - A Donor's Guide to Car Donation - An excerpt regarding new tax law information
We're Ready To Help, and It Couldn't Be Easier
We work hard to get you the maximum tax return for your vehicle donation. Feel free to call us at 1-877-431-9474 with any questions you might have and one of our representatives will help you.