Planes, trains, automobiles, oh my! So, you have decided to donate your car, truck, motorcycle, boats, jet skis, farm equipment, or construction equipment which are taking up space in your garage, barn, driveway or storage. Keep in mind, one of the several benefits of donating to our program is the tax deduction. Below you will read, the top tax tips for donating a car or vehicle to Yellow Ribbon Vehicles.
- Always consult your tax professional in regards to any charitable donations. Each donor’s tax situation is different from another, so it is best to seek out expert advice.
- In addition, you may seek out additional advice from the IRS on how to claim this and other charitable donations. Tax forms, publications, and supplemental reading materials are accessible through the IRS website: www.irs.gov. Also, you may call 1-800-829-3676 to direct any questions about your claims or drop by a walk-in IRS office, which are located throughout the country.
- One of the first steps of this process is to determine that the charity is in fact 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. Yes, Yellow Ribbon Vehicles is a 501(c)(3) organization! If you are interested in learning if other charities are tax deductible, visit IRS.gov to search for registered charities.
- Be sure to save your receipt from Yellow Ribbons Vehicles after donating a car or vehicle. Your receipt will be generated as soon as the vehicle sells. In most cases you can expect a receipt within 30 days from the time we pick up your vehicle.
- Please keep in mind, the IRS will only allow a deduction for the fair market value of the car. This can be found on the tax receipt mailed to you for your donation. If the car is worth more than $500, you must complete Section A of IRS Form 8283 and attach it to your tax return.
- Finally, if the car is worth $5,000 or more, an independent appraisal is necessary. As the donor, you must also fill out Section B of IRS Form 8283. It is wise to take pictures of the car and save receipts for new tires or other upgrades to verify its value.