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Cars for Homes: Tax benefits of your car donation

Can I claim my car donation as a tax deduction?
Yes. Habitat for Humanity is a 501(c)(3) nonprofit organization. Contributions, including vehicle donations, may be claimed as deductions on your federal tax return if you itemize on Schedule A of Form 1040.

How much can I deduct?

• Once Cars for Homes sells your vehicle, the selling price becomes the amount of your donation.
• If your vehicle sells for more than $500, you may deduct the full selling price.
• If your vehicle sells for $500 or less, you can deduct the “fair market value” of your vehicle, up to $500.

How do I figure out the “fair market value” of my car?
The following websites can provide this information:

• Kelley Blue Book
• Edmunds
• NADA Guides

What documentation will I receive for my tax return?
Within 30 days of the sale of your vehicle, Habitat will send you a written acknowledgement/receipt. This receipt will include:

• The gross selling price of the vehicle (if it sold for greater than $500).
• Year, make, model and vehicle identification number information.
• A statement that the vehicle was sold at arms-length between two unrelated parties.
• A statement that no goods or services were received in return for your contribution.

Where can I get more information?
Consult your tax adviser or refer to any of these IRS Publications:

• Publication 4303, A Donor’s Guide to Vehicle Donations (147KB .pdf)
• Publication 526, Charitable Contributions (1.2MB .pdf)
• Publication 561, Determining the Value of Donated Property (1MB .pdf)
• Form 8283, Noncash Charitable Contributions (256KB .pdf)
• Instructions for Form 8283 (63KB .pdf)

This information was provided courtesy of DonationWizard.com, a service of Advanced Remarketing Services, Inc.