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Donating cars to charity is a terrific way of helping others while also saving on your taxes. Your car donation is tax deductible, up to the full fair market value of the vehicle (if the charity keeps the vehicle) or up to the value for which the charity sells the vehicle, provided it is made to a legitimate 501(c)(3) charitable organization. Be sure to check that the organization to which you donate your car has current tax-deductible status from the IRS. When you file your tax returns for the year in which you donate your car, itemize car donations along with any other deductions. You can deduct car donations up to the full, fair-market value of the vehicle.
|Jennifer Mathes, Ph.D.|