IRS Tax Information-

Read through the official IRS information on vehicle donations before donating your vehicle to charity.

 

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IRS Car Donation and Tax Information 
A car donation to a charity can be a great way to get a deduction on your taxes.

The IRS allows you, the taxpayer, to claim a tax deduction of the value of their donated vehicle based on the following circumstances: 

  1. After your vehicle is picked up the first receipt from the charity will be good for up to $500.
  2. If the vehicle sells for more than $500, American Relief Foundation, will mail the taxpayer a notification stating the amount at which it sold. The 1098C Form will provide an updated contribution amount and the original receipt should be destroyed.
  3. In some cases fair market value for certain vehicles, such as late model cars or vans that end up being used to further the work of our charity OR vehicles to which we make a significant material improvement or major repair, prior to selling it.

In each case, you will receive a tax receipt at the time that your vehicle is picked up. Assuming a vehicle sells for more than $500, we will then mail you a 1098C with an updated contribution amount. Please refer to Publication 4303, 'A Donor's Guide to Car DonationThis publication is focused on individuals who make such donations

Please feel free to contact us at {phone_arfforkids} with any questions you may have.

Before donating your car, we encourage you to read the latest official IRS information on vehicle donations. -- Included is some of the most relevant information below:

I donated a used car to a qualified charity. I itemize my deduction, and I would like to take a charitable contribution for the donation. Do I need to attach any special forms to my return? What records do I need to keep?

If you claim a deduction on your return of over $500 for all contributed property, you must attach a Form 8283 (PDF), Noncash Charitable Contributions, to your return. If you claim a total deduction of $5,000 or less for all contributed property, you need only complete Section A of Form 8283. If you claim a deduction of more than $5,000 for an item or group of similar items, you need to complete Section B of Form 8283, which requires an appropriate professional appraisal by a qualified appraiser. You will need to obtain and keep evidence of your car donation and be able to substantiate the fair market value of the car. If you are claiming a deduction of $250 or more for the car donation, you will also need a written acknowledgement from the charity that includes a description of the car and a statement of whether the charity provided any goods or services in return for the car and, if so, a description and estimate of the fair market value of the goods or services. For more information on these requirements, refer to Publication 526 (PDF), Charitable Contributions, Publication 561 (PDF), Determining the Value of Donated Property, Noncash Charitable Contributions, and its instructions, and Tax Topic 506, Contributions. This publication explains how to claim a deduction for your charitable contributions. It discusses organizations that are qualified to receive deductible charitable contributions, the types of contributions you can deduct, how much you can deduct, what records to keep, and how to report charitable contributions.

For more information on these requirements, refer to *** Publication 526 (PDF), Charitable Contributions,Publication 561 (PDF), Determining the Value of Donated Property, Noncash Charitable Contributions, and its instructions, and Tax Topic 506, Contributions.

***This publication explains how to claim a deduction for your charitable contributions. It discusses organizations that are qualified to receive deductible charitable contributions, the types of contributions you can deduct, how much you can deduct, what records to keep, and how to report charitable contributions.

 

Key Terms:

charitable contribution is a donation or gift to, or for the use of, a qualified organization. It is voluntary and is made without getting, or expecting to get, anything of equal value.

Qualified organizations. Qualified organizations include nonprofit groups that are religious, charitable, educational, scientific, or literary in purpose, or that work to prevent cruelty to children or animals. You will find descriptions of these organizations under Organizations That Qualify To Receive Deductible Contributions.

Form 1040 required. To deduct a charitable contribution, you must file Form 1040 and itemize deductions on Schedule A. The amount of your deduction may be limited if certain rules and limits explained in this publication apply to you.

IRS Tax Form for filing taxes -- Form 8283

There is a tax form that you will need when you fill out your return. It is form 8283. You can find this form at the IRS web page http://www.irs.gov/pub/irs-pdf/f8283.pdf. The instructions for this form can be found at http://www.irs.gov/pub/irs-pdf/i8283.pdf.


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