Taking Charitable Deduction on Vehicle

By | December 12, 2013

If you are the title holder, you can contact the charity and explain to them you want the donation to be in one of your parent’s names. You have to sign & transfer the title.

Most vehicle donation programs use a 3rd party for-profit company. The company has a dealers license and charges a fee for selling, picking up and auctioning the vehicles.


Charitable Deduction on Salvage Vehicle

If it’s not running it will probably be salvaged. What happens is the salvage yards bid on the vehicles. If your car sells to the bidder for say $300, you are allowed to claim up to $500 if the FMV is $500 or more. If the vehicle is in fair-good condition, they are auctioned. If they car sells for more than $500 you can only claim the amount it was sold for. So if you donate a car and it sells at auction for $750, but the FMV is $1000, you can only claim $750. If your car sells for more than $500 you get a 1098-c, if it sells for less than $500 you don’t need one. The only thing that would make your donation $0 would be if your car is not whole, in which case it would never be accepted for pick up.