How is the value of my vehicle donation determined?
Determining the value of your tax deduction for a vehicle donation is not as simple as looking up the fair market value. You must take into consideration how the charity used the vehicle.Instant AuctionIf the charity immediately sells your vehicle, you are only allowed to deduct the sales price. For example, if you donate a car with a market value of $4,000 but it sells for $3,000 at auction, you can deduct only $3,000.ExceptionIf your car sells for less than $500 and for less than the market price, you can claim the lesser of $500 or the market value of your car if you get documentation from the charity attesting that the fair market value of the car was at least $500. If you cannot prove the fair market value was at least $500, you can deduct only the sales price of the car. For example, if your $1,000 car sells for $300 at auction, you can deduct $500 with proper documentation because $500 is the lesser of the fair market value ($1,000) and $500. If you did not have documentation, y
