Car donation programs are popular vehicles for charities to raise funds. Car donations appeal to taxpayers who want to get rid of used vehicles and take the tax deductions. IRS rules give specific guidelines for taxpayers seeking a car donation tax deduction.
There are several steps to take to meet car donation tax law.
* First, verify that the recipient organization is tax-exempt.
* If the vehicle is worth $500 or less, you can deduct its fair market value at tax time.
* If the vehicle is worth more than $500, your deduction is the amount the charity gets reselling the car. There are special exceptions to this rule.
* Finally, research and know state laws regarding title transfers for car donations.

About LifeTips

Now one of the top on-line publishers in the world, LifeTips offers tips to millions of monthly visitors. Our mission mission is to make your life smarter, better, faster and wiser. Expert writers earn dough for what they know. And exclusive sponsors in each niche topic help us make-it-all happen.

Ask a Question

Not finding the advice and tips you need on this Car Donation Tip Site? Request a Tip Now!

Guru Spotlight

Patricia Walters-Fischer

Ever wonder how you could make your life better and more fun? So have tens of millions of fans who have turned to LifeTips for answers over the past decade. We keep the tips, advice, books, podcasts and writing services flowing, so you can keep your life and business growing in the right direction. Upward!