Tax benefits of your car donation
Proceeds from the sale of your donated vehicle will help Habitat build homes, communities and hope in the United States. Plus, it’s fast and easy to do, and your donation will qualify for tax deductions. Take a look at our most common tax questions below.
“The process is easy and simple and I even qualified for a tax deduction!”— Eric B., Providence, RI
Frequently asked questions about vehicle donation tax benefits
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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.
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Once your vehicle is sold, the selling price determines 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.
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The following websites can help you calculate your vehicle’s fair market value.
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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.
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You can learn more by reviewing the IRS documents below or by consulting with your tax adviser.
- 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)
- Form 8283, Instructions (63kb .pdf)
This information was provided courtesy of our donation wizard, a service of Advanced Remarketing Services. If you have more car donation questions, visit our FAQ page or email [email protected].
Ready to donate your vehicle?
Donate online or call 1-877-277-4344.
