Car Donation Tax Deduction Calculator
There are many sites out there on the web that can give you a car donation tax estimation. If you’re considering donating your vehicle to a charity for tax deduction purposes, you might want to do some research to determine if it will work best in your favor to donate it or if it might be better to just sell or trade the vehicle.
The charity you want to donate the vehicle to has to comply with certain requirements from the IRS if you want to claim more than $500 as a donation. You will need a statement from the charity stating that you received nothing in exchange for the donated vehicle. This has to be an official document from the Charity.
Other information needed on the document is your full name and tax id., your Social Security number or EIN, and also include the Vehicle Identification Number (VIN), and the date you donated the vehicle. If you plan on claiming just $500 for the donated vehicle, the official documents are not necessary. The charity should furnish you the form #8283 if your vehicle is worth more than $500 and you have to attach a copy to your tax return.
You can get a deduction for your Car Donation at fair market value if you get a statement from the charity stating that they will be using the vehicle themselves, for the business, or they have some disabled or needy person that is going to be using the vehicle. If your vehicle is worth more than $500, you should use one of the Tax deduction calculators available to determine how much you can claim on your tax return.
To donate your car from anywhere in the country visit us at our Car Donation charity website.
