Dear Jason – December
I have a car that I want to donate to charity. How much of a tax deduction will this provide me?
To receive any type of tax deduction for your donated vehicle, you will need to claim an itemized deduction on your tax return. Make sure that doing so will provide a greater deduction than the standard deduction. If so, then you need to find out what the charity will do with your donated car. If they sell the car and use the proceeds to help the charity, then your deduction will be limited to the amount of money the charity received for the car. Any deduction above $500 for a sold donated vehicle will require a form 1098-C that you will receive within 30 days of the sale of the car. If the vehicle is transferred to a needy individual and not sold, then you may deduct the fair market value of your car.