Ask Terry Questions donating a vehicle

donating a vehicle

By Terry Savage on November 16, 2023 | Taxes & Economy

What are the benefits of donating a vehicle over selling it outright?
What tax documents should I be receiving/ looking for from a vehicle donation?
thank you

Terry Says

This is a complex answer, so here is a link to the IRS publication 4303, which explains all the rules (and note that your state might have slightly different rules) for deductions on donations of cars.
You can google organizations that accept cars as a donation. But you should understand the rules for valuing the donation. And you should check with your accountant to make sure that you plan to itemize your tax deductions, and that you can actually use the deduction you receve.

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