A donation to a non-profit organization or charity that is classified under 501(c)[3] are often tax deductible. If the charity you designate to is classified as such, the donations made to Cars for Charity may be utilized as a tax write-off, allowing you a car donation tax break.

The tax laws for donating vehicles worth more than $500 changed on Jan.1, 2005. Under the new IRS rules http://www.irs.gov/newsroom/article/0,,id=136939,00.html, if the claimed value of the donated vehicle, boat, RV, or motorcycle is more than $500 and the vehicle is sold, the taxpayer can only claim the gross proceeds from the sale. After the vehicle is sold, Cars for Charity will send the donor a statement with the amount the vehicle sold for. Taxpayers can still deduct the fair market value of a vehicle worth $500 or less. If the vehicle sells for $500 or less, Cars for Charity is not required to notify the donor of the selling price; the donor can claim up to $500 as a deduction.

Everyone’s tax situation is different, so consult with your tax professional.

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