Important IRS Rules For Vehicle Donations

rules for vehicle donations
1-800-Charity Cars appreciates every financial and vehicle donation that we receive from generous people like yourself. Through all the donations we have received, since our establishment in 1996, we have come to realize that so many people were or may be hesitant about donating a vehicle simply because they do not understand the guidelines.

We would like to review the rules for vehicle donations set forth by the Internal Revenue Service for vehicle donations, so that you can donate your vehicle with a better understanding.

Here are some IRS rules for vehicle donations you should be aware of:

Donate To A Qualified Organization

The most common qualified organizations are 501(c)(3) organizations. This includes charitable, religious and educational organizations, often referred to as charities. You can verify the qualification of those you wish to donate to by visiting the IRS website and utilizing their EO Select tool or by calling the IRS Customer Account Services for Tax Exempt and Government Entities toll free at 877-829-5500 and provide them with the charity’s name and address. Certain organizations; like churches, mosques, synagogues and temples, are not required to apply for exemption and may not be listed, so if you have any concerns be sure to call for verification.

Donate Qualified Vehicles

A qualified vehicle is a boat, airplane, or any car/motor vehicle whose manufactured purpose was for use on public roads or highways.

Deductions That Exceed $5,000

If the qualified vehicle you donated has a value of more than $5,000, you must complete section B of Form 8283 signed by an authorized official of the charity and a copy of the 1098C form from the charity. In some instances, where you are not limited to the gross proceeds from the sale of the vehicle, you will also need to obtain a written appraisal for your donated vehicle from an authorized appraiser and it must be no more than 60 days prior to donating your vehicle.

Deductions That Exceed $500, but Less Than $5000

If your qualified donated vehicle value is more than $500, but less than $5000, you must complete section A of Form 8283 and also provide a 1098C form from the charitable organization.

Deductions of at least $250, but less than $500

If the qualified donated vehicle value is more than $250, but less than $500, you need to provide a written statement from the organization you donated to.

For further detailed explanations/exceptions of the rules for vehicle donations by the IRS, we suggest visiting the following:

The Internal Revenue Service – A donor’s guide to vehicle donations

The Internal Revenue Service publication 526 on Charitable Contributions

As always, the original 1-800 Charity Cars is here to help make the donation process fast and easy and we are more than willing to assist you with any questions or concerns regarding rules for vehicle donations that you may have. Give us a call today at 1-800-242-7489, we have live operators available 7 days a week.

Now that you know the rules for vehicle donations, you can start the donation process now and help change the lives of struggling families by making a monetary donation or car donation to 1-800-Charity Cars. We accept all types of vehicles nationwide and you will receive a full fair market value vehicle donation tax-deduction, if we provide your vehicle to a deserving family. Fill out our quick online car donation form or utilize our online monetary donation services using JustGive or PayPal at www.800charitycars.org.