Step 2: Determine The Value Of Vehicle
Thanks to new tax law (in effect as of January 2005), the IRS has taken the guesswork out of determining the value of your vehicle. You may deduct the full price that we receive from the sale of your vehicle. This greatly simplifies the process for you, the donor, because you no longer have to research and come up with an estimate of the fair market value of the vehicle. This also eliminates the risk of you getting into trouble by overstating the value of your deduction on your tax return. You’ll know exactly the amount you may deduct, eliminating guesswork, and saving you both time and risk.
You will receive a receipt at the time we pick up your vehicle, and as a follow up we will send you a second receipt later, as soon as we sell it, letting you know the exact amount for which it sold. That amount is your tax deduction.
If the age or condition of your vehicle is such that your tax deduction works out to be less than $500, you may use its fair market value instead of the sale price. For more information on determining fair market value for cars worth less than $500, click Car Value.
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