Donating a Vehicle Worth More Than $5,000

Do you need an appraisal to donate a car worth more than $5,000? No: when we sell your car, you do not need a qualified appraisal, and the sale price is what sets your deduction. This page explains why, what changes when a charity doesn't sell, and which forms you file.

None of this is reserved for expensive cars. The rules below apply at every value, and we work to get the most for every vehicle we accept, whether it's worth $3,000 or $30,000.

You can claim this only if you itemize deductions. This page is general educational information, not tax, legal, or accounting advice, and because we are a charity rather than a tax advisor, we can't speak to your individual situation. Tax law is complex and changes, so talk with your own accountant, tax advisor, or attorney before you claim anything, since only a qualified professional who knows your full financial picture can advise you.

The Short Version

• When we sell your car, you do not need a qualified appraisal, at any value, because the sale price is what sets your deduction.
• If your deduction is more than $500, you file Form 8283, Section A, at every value, including above $5,000.
• Section B is the long form that requires a qualified appraisal, and it belongs to the other route.

Do I Need An Appraisal To Donate A Car?

No. You do not need a qualified appraisal, no matter what your vehicle sells for. Because we sell the vehicle at public auction, the sale price sets your deduction.

The reason is simple. An appraisal is an opinion about what a vehicle would sell for, and we have what it did sell for. There is nothing to estimate and nothing for you to defend.

Above $5,000 is where many donors expect to be told they need a car donation appraisal. With us, there isn't one, because the sale price sets your deduction.

Above $5,000, Two Routes Diverge

When you donate a car worth more than $5,000, the paperwork can go one of two ways, and both use fair market value. The difference is how the number gets proven.

Our route. We sell the vehicle, and an arm's length auction establishes the value. The sale price sets your deduction, you do not need a qualified appraisal at any value, and you file Form 8283, Section A.

The other route. The charity makes significant use of the vehicle or materially improves it before selling it, or gives it to a needy individual in furtherance of its mission. The vehicle usually still gets sold in the end, but the sale no longer sets the number. What the donor deducts instead is fair market value, which is an appraiser's opinion.

Above $5,000, the other route means a qualified appraisal and Form 8283, Section B. An appraisal estimates what a vehicle would sell for, while an auction shows what it did sell for.

What The Appraisal Route Actually Costs You

The appraisal route has two costs. The first is an out-of-pocket fee: the donor pays for the qualified appraisal, at their own cost. The second is risk, because the number is an opinion that the donor has to be able to support.

If the IRS disagrees with the appraiser's number, that argument is the donor's to have. This is a real trade-off, not a trick.

How Your Deduction Works

Your deduction is what your vehicle sells for. If it sells for $500 or less, you can generally claim its fair market value up to $500.

Towing, auction and processing costs do not come out of your deduction. The 1098-C reports gross proceeds. See how the deduction is calculated for more.

Form 8283 For A Car Donation

If your deduction is more than $500, you file Form 8283, Section A. Section A applies at every value, including above $5,000. Attach your 1098-C to the Form 8283.

If you e-file, attach it as a PDF if your software allows it. If it doesn't, mail Copy B of the 1098-C with Form 8453.

Form 8283 has two halves. Section A is the short one. Section B is the long one, for donated property worth more than $5,000, and it is the one that requires a qualified appraisal and an appraiser's signature.

The heading printed on Section B of the form reads: "Section B. Donated Property Over $5,000 (Except Publicly Traded Securities, Vehicles, Intellectual Property or Inventory Reportable in Section A)." Vehicles are named in the exception. That is why you skip the appraisal when we sell your vehicle, and it is why the no-appraisal rule and the Section A rule are really one rule.

When A Different Charity Is The Better Choice

The exception is real. A charity that makes significant use of a vehicle, materially improves it, or transfers it to a needy individual in furtherance of its mission is on the other route, and the value there is set by appraisal instead of by the sale.

We sell, so for us the deduction is the sale price. If you want the value set by an appraiser's opinion rather than by what a room of buyers actually pays, you need a charity that will use or improve the vehicle first, and you would pay for the appraisal and carry the audit exposure.

That route is not a guaranteed larger deduction, and we don't claim ours is larger. The difference is certainty and cost, not amount. With us, there is no appraisal because the sale price sets your deduction, and there is no appraisal fee and nothing for you to defend. If you're still deciding, see our guide to choosing a charity.

What We Send You And When

After pickup, you receive a receipt acknowledging your donation. After your vehicle sells, we send your tax form within 30 days of your vehicle selling. For a deduction of more than $500, that form is the 1098-C, and you can see what the 1098-C reports box by box.

Attach your 1098-C to the Form 8283, Section A, and keep your copy with your tax records. There is no appraisal anywhere in this process, because the sale price is what sets your deduction.

Frequently Asked Questions

Do I need Form 8283, Section B for a car worth more than $5,000?

Not when we sell your car. Section A applies at every value, including above $5,000, and the sale price sets your deduction.

What is a qualified appraisal?

A qualified appraisal is an opinion about what a vehicle would sell for, prepared by a qualified appraiser, and it is what Section B requires. When we sell your vehicle, you do not need one, because the sale price sets your deduction.

Who pays for an appraisal?

On the other route, the donor pays, at their own cost. When we sell your vehicle, there is no appraisal to pay for, because the sale price sets your deduction.

What if my car is worth less than $5,000?

The steps are the same. We sell the vehicle, the sale price sets your deduction, and if your deduction is more than $500, you file Form 8283, Section A.

More Help

The same rules apply to every vehicle we accept, from cars and trucks to motorhomes and RVs. Have a classic or collector vehicle? See our page on classic and collector cars.

Ready to donate? Start your car donation online or call 1-855-278-9474.