2023 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 Car Donation Foundation makes it easy. If you would like to help provide local children with a better life and get a tax deduction, then you're already almost done. It's as simple as filling out the little form to the right or calling 1-844-476-9474. 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 supporting your local children's charities in Minnesota.
We Make It Easy To Get A Tax Deduction For Your Vehicle Donation!
Simply filling out our donation form online (or call 1-844-476-9474) and we take care of the rest. Your vehicle is picked up, sold, and proceeds benefit your local children's charities in Minnesota, but you also get a receipt for applicable tax deduction purposes.
How Car Donation Tax Deduction Works
The IRS allows the taxpayer to claim a charitable tax deduction as follows:
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 1-844-476-9474 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 tax 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.
Latest IRS Publications Concerning Vehicle Donations And Deductions
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 1-844-476-9474 with any questions you might have and one of our representatives will help you.