Tax benefits of your car donation
Can I claim my car donation to Habitat for Humanity 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 your vehicle is sold, 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:
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.