Tax Deduction
Q. What happens to my car once I donate it?
A. Depending on its condition, your car will either be sold for parts or whole at auction. In some cases, vehicles in good running order are given to families who are in need of transportation. Every cent made from the sale of the cars goes toward the development and maintenance of our social services programs.
Q. What kind of deduction can I get for my car donation?
A. A tax advisor can best answer this question, as tax deductions on automobile donations yield different benefits for every donor.
If there is a $500 profit (or less) on the vehicle you donated and you intend to itemize your deductions, you can write off the market value of the vehicle up to $500 (we will supply you with the initial receipt you’ll need in order to do this). We will also send you a supplemental IRS 1098-C form which shows the gross proceeds of the sale. You will also need to file IRS form 8283.
If there is a profit in excess of $5,000, we will file IRS form 8282 and will be in touch with you regarding other federal requirements.
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