How Can You Get A Car Donation Tax Deduction?
You can get a car donation tax deduction by donating your car given that you passed the qualifications that the IRS has imposed. The IRS has a list of all the organizations in which you can donate your car to and guarantee a deduction from the IRS. However, there is an exception to the rule. Churches, temples, mosques, and government establishments need not be on that list in order to qualify as an organization that you can donate to.
In order to avail of the tax deduction benefit, you will first have to itemize on your tax return the vehicle instead of doing a standard deduction. Make sure you do that, otherwise it will not be honored as a valid donation and you might just be better off selling your car. You have to be truthful about the Fair Market Value of the vehicle that you are going to donate. There is no going around this because the IRS will ask you to provide supporting documents as to how you came up with such value.
