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Donate Car for Tax Credit
Donating
your car or vehicle to charity can be a great way to get a federal tax
deduction (state income tax deductibility depends on state law), 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.
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. 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
Q:Will my vehicle donation be good for the year that I
sent in the donation form, even if I don’t receive the receipt until the
beginning of the New Year?
A: YES! IRS Publication 4303, “A Donor’s Guide To
Vehicle Donations” states: “… the written acknowledgment must contain the date
of the contribution…” The date of contribution is the date that we received the
donation form. So it can even be on the 31st of December and will still allow a
charitable vehicle deduction for that tax year.
Q:Does the donation count toward the year I submitted
the online form even if the vehicle isn’t picked up until the new year?
A: YES! As stated above.
Q: Some charities offer vacation packages as incentives
to donate. Does that affect my tax deduction?
A: YES! If a charity provides a commodity, like a
vacation package, for example, in exchange for a car or vehicle donation, then
the tax receipt from that charity must state the fair market value of that
commodity and the fair market value of that commodity must be subtracted from
the value of the car donation.
For example: If your vehicle sells for $1,000.00 at auction and
your vacation package that you receive has a fair market value of $400.00, you
can only deduct $600.00. That’s $1,000.00 for the donated car less $400.00 for
the vacation package resulting in a maximum deduction of $600.00 ($1000.00 –
$400.00 = $600.00)
We certainly do not want donors to be shocked by
receiving a tax letter that states they have to subtract the fair market value
of the vacation from the value of their vehicle.
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.
