donate car for tax credit

How Much Can I Deduct?

 

When you donate a car you may deduct the fair market value when filing your taxes. You can determine this value using tools like Cars.com's Kelley Blue Book Used-Car Values calculator.

The actual amount you are able to deduct is dependent on what the charity does with the donated vehicle. Your charity could do one of the following:

• Sell the vehicle Your deduction is limited to the gross proceeds the charity receives from selling the vehicle. If that amount is less than $500, you may be able to deduct the fair market value up to $500.
• Make use of the vehicle, make a material improvement to the vehicle or sell the vehicle to a needy individual for below fair market value You may be able to deduct your vehicle's fair market value on the date you donated it.