Get Tax Deduction for Vehicle Donation

October 29th, 2010 |

Wondering how will you be able to get a tax deduction for Vehicle Donations? There are thousands of generous car donors have decided to finally donate their cars to many non-profit organizations. Here are some guidelines that you can follow when considering getting a tax deduction for your donation.

To be able to determine your car’s fair market value, use Kelley’s blue book. It would be wiser to give lower estimated for your car’s value since IRS will never use highest value. Other factors that may also affect your car’s value are mileage, condition and car accessories. Find a reputable charitable institution that is tax-exempt to donate your car. The charity you choose will benefit from your donation’s proceeds. The tax deductions’ total amount will be based on your vehicle’s final sales price.

A tax deduction receipt will be given to you by the towing company for your vehicle donation. Make sure that your receipt has the name and address of the organization and your car’s fair market value and date. Contact the organization for your car donation and learn about the other details of your car. Then add your car donation to your tax return. This is how simple is the process of vehicle donation.