You have probably seen or heard ads asking you to donate your old clunker car to charity. You may have even had that terrible jingle in your head for most of the day.
If you do donate your car you may be entitled to claim a charitable contribution deduction on your tax return. The IRS recently released a publication titled A Donor’s Guide to Vehicle Donation that provides general guidelines to individuals who donate their used vehicles to charity. The guide provides information on how to verify that an organization is qualified to receive tax deductible contributions, how individuals can qualify for a tax deduction on their tax returns, what documentation they should submit (IRS form 8283, non cash charitable contribution) and documentation they should keep on file.
It also provides information on how individuals can determine the fair market value of their vehicles, the amount that can be deducted and information on filing requirements. Not only is a donation beneficial to a qualifying charity, but it is also beneficial to you as a taxpayer. If you are interested in learning more about how to donate a used vehicle, this is a great resource.