How is the tax deduction amount on a car donation determined?

family-car-decalThe amount of the tax deduction is based on the sale price of your vehicle. Vehicles that sell for over $500 entitle you to a deduction equal to the sale price. If your vehicle sells below $500 you may take the greater amount of either the sale price, or the fair market value of the vehicle (up to a maximum of $500). This means that in most cases, your minimum tax deduction amount will be $500.

You should consult your tax professional if you have further questions. (Please be aware that to qualify for a tax deduction, you must not receive, in exchange, any goods and / or services from the 501(C)(3) nonprofit organization receiving your donation.)

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