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TAX Questions

The Epoch Car

TAX Questions

Will I get a tax receipt for my donation?

Yes. You will receive an initial donation receipt at the time of your vehicle pick-up. You will then be mailed a tax receipt within 30 days of the sale of the vehicle. This acknowledgement will indicate your name as well as the year, make, model, and VIN. It will be your only receipt if your vehicle sells for less than $500.

If your vehicle sells for more than $500 and your tax identification number has been provided, an “IRS Form 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes” will be mailed to you.

Will my donation count for the year I submit my donation form?

Yes! As long as you submit your donation form by December 31 for a vehicle with a clean title, you will receive a tax deduction for the same tax year.

How is the value of my vehicle determined?

The value is determined by the gross proceeds raised from the sale of the donated vehicle. You no longer have the burden of determining the value yourself. The nonprofit organization will report the gross proceeds raised from the sale of the vehicle to the donor and IRS.

Tax Benefits of Car Donation

When you donate through our program you are eligible for a tax deduction. However, to claim your deduction you need to itemize it on your income tax return.

In 2005, the IRS changed the laws related to tax deductibility of car donations because of exaggerated deductions based on inflated book values. Under the new rules, the deductible amount of your vehicle donation is directly related to the selling price of your vehicle.

 

Here are some car donation tax tips:

  1. Make sure the charity is eligible to receive tax deductible contributions. The most common types of qualified organizations are section 501(c)(3) organizations, such as charitable, educational, or religious organizations. Visit IRS.gov to search for registered charities. 
  2. If the car is worth $5,000 or more, an independent appraisal may be necessary. The donor would fill out Section B of IRS Form 8283.
  3. Consult your tax adviser or the IRS for more information about how you can claim charitable deductions. The IRS can answer your tax questions and can provide tax forms, publications, and other reading materials for further assistance. IRS materials are accessible through the Internet at www.irs.gov, through telephone ordering at (800) 829-3676, and at IRS walk-in offices in many areas across the country.

Charity Car Donation Help Links

If you have additional question about deductions and IRS Regulations, the following links may be of assistance:

IRS Publication 4303, A Donor’s Guide to Car Donations (PDF) 
Publication 526, Charitable Contributions (PDF) 
Publication 561, Determining the Value of Donated Property (PDF) 
Form 8283 Noncash Charitable Contributions (PDF) 
Instructions for Form 8283, Noncash Charitable Contributions (PDF) 

 

Links to Car Valuation 

Kelley Blue Book 
www.kbb.com 

Edmunds 
www.edmunds.com 

NADA Guides 
www.nadaguides.com 

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