Tax benefits of your car donation
Proceeds from the sale of your donated vehicle will help UFCF families in the United States build strength, stability and self-reliance. Plus, it’s fast and easy to do, and your donation will qualify for tax deductions. Take a look at our most common tax questions below.
Can I claim a tax deduction on my car donation to UFCF?
Yes. United Foundation of Central Florida is a 501(c)(3) nonprofit organization. Contributions, including vehicle donations, may be claimed as deductions on your federal tax return, if you itemize.
How much can I deduct?
Once your vehicle is sold, the selling price determines the amount of your donation. If your vehicle sells for more than $500, you may deduct the full selling price. If your vehicle sells for $500 or less, you can deduct the “fair market value” of your vehicle, up to $500.
How do I figure out the fair market value of my car?
The following websites can help you calculate your vehicle’s fair market value.
What documentation will I receive for my tax return?
Within 30 days of the donation or sale of your vehicle, UFCF will send you a written acknowledgement/receipt. This receipt will include:
The gross selling price of the vehicle, if it sold for greater than $500.
Year, make, model and vehicle identification number information.
A statement that the vehicle was sold at arms-length between two unrelated parties.
A statement that no goods or services were received in return for your contribution.
A Statement confirming the vehicle at its value has been including into the UFCF Inventory for transportation use.
Where can I get more information?
You can learn more by reviewing the IRS documents below or by consulting with your tax adviser.
Publication 4303, A donor’s guide to vehicle donations (147kb .pdf)
Publication 526, Charitable contributions (1.2mb .pdf)
Publication 561, Determining the value of donated property (1mb .pdf)
Form 8283, Instructions (63kb .pdf)
Tax Questions
What are the tax benefits of donating my vehicle?
United Foundation of Central Florida is a 501(c) (3) nonprofit organization.
If you itemize deductions on your income tax return, it may be possible to claim a deduction for your car donation.
In 2005 the IRS changed the laws related to tax deductibility of vehicle donations because of exaggerated deductions based on inflated book values (book values tend to become less reliable as a vehicle ages). Under the new rules, the deductible amount of your donation is directly related to the selling price of your vehicle.
If your vehicle sells for less than $500 you can take a deduction equal to the 'fair market value' of your donation up to $500. Fair Market Value is loosely explained as the "Blue Book" or "Guide Book" value of your vehicle. See the links below for Kelley Blue Book, NADA Guides or Edmunds.
If your vehicle sells for more than $500 your may deduct only the full selling price of the vehicle.
The charity is required by IRS to send to the donor a contemporaneous written acknowledgement (receipt) within 30 days of sale. This Receipt must include the following.
The gross selling price of the vehicle (if sold for greater than $500)
Year, Make, Model and VIN Information
A statement that the vehicle was sold at arm's length between two unrelated parties
And a statement that no goods or services were received in return for your contribution.
If you have additional question about deductions and IRS Regulations the following links may be of assistance
IRS Publication 4303, A Donor's Guide to Car Donations (PDF)
Publication 526, Charitable Contributions (PDF)
Publication 561, Determining the Value of Donated Property (PDF)
Form 8283 Noncash Charitable Contributions (PDF)
Instructions for Form 8283, Noncash Charitable Contributions (PDF)
Links to Valuation
Kelley Blue Book
www.kbb.com
Edmunds
www.edmunds.com
NADA Guides
www.nadaguides.com