Tax AdvantageTax Advantage | IRS Tax Laws
Per IRS Publication 561, all nonprofit organizations are prohibited from assigning values to material donations. The vehicle donation tax laws stipulate that the donor can only write off the resale value of the vehicle which can’t be determined until the vehicle is sold. Upon the sale of your vehicle, you will be notified of the sale price. All appropriate documentation that you will need to claim the deduction on your tax return will be provided to you in a timely manner including a donation receipt and the IRS Form 8283. If the claimed value of the donated motor vehicle, boat or plane exceeds $500 and the item is sold by the charitable organization, the taxpayer is limited to the gross proceeds from the sale. More IRS guidelines for charitable contributions can be found at their web site at http://www.irs.gov/ or by calling toll-free 1-800-829-1040.
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Red Cross News |
Donating a vehicle to the American Red Cross of the Delmarva Peninsula allows us to help disaster victims in our local community. It's also an easy way to get a tax deduction because the Red Cross is an IRS-approved IRS 501(c)(3) nonprofit organization. But before you donate, there are some important things you need to know.