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Vehicle Donation Information Gresham OR

Atypical for our tax system, taxpayers are actually encouraged to help others through deductions. Here's the latest tax information on donating vehicles to charity.

Stephen Kirkendall
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Vancouver, WA
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Fred King, CFP
The H Group, Inc.
Portland, OR
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B.S., Business
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Jackson Hewitt
(503) 667-6700
790 E. Powell Blvd
Gresham, OR

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David's Star Tax & Facts Inc
(503) 491-9702
500 NW 20th St
Gresham, OR

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Corry's Tax Svc Ltc
(503) 666-3224
745 NE 239th Pl
Wood Village, OR

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(503) 597-2700
5285 Meadows Rd Ste 148
Lake Oswego, OR
Sumner Financial Group Ltd
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Landmark Tax & Investment Services Inc.
(503) 491-1000
415 NE 4th St.
Gresham, OR
Liberty Tax Service
(866) 871-1040
1865 Ne Division St
Gresham, OR

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Business Services Northwest
(503) 666-6223
999 NW Frontage Rd Ste 160
Troutdale, OR

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1040 Express Tax Service
(503) 674-0202
18210 E Burnside St
Portland, OR
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Vehicle Donation Information

Donating Vehicles to Charity

Atypical for our tax system, taxpayers are actually encouraged to help others through deductions. Here's the latest tax information on donating vehicles to charity.

Traditionally, a taxpayer was given a windfall when donating a vehicle to charity. Regardless of the condition, one could claim a deduction for the fair market value of the car. Obviously, the fair market value of a car is a bit of a vague figure. Alas, the IRS has issued new regulations clamping down on unrealistic fair market value claims.

Under the American Jobs Creation Act, the method for valuing a vehicle donated to charity has changed. Instead of claiming fair market value, now you can only claim the actual sales price the charity gets when selling off the car. Put another way, the old rust bucket in the driveway just lost a lot of value for tax purposes.

It is unclear why a "jobs act" would have language related to vehicle donations. Alas, it does. Not only are you restricted to claiming the actual sales price of the vehicle as a donation, you must also take an extra step. You are now required to obtain and retain written and timely acknowledgment of the sales price from the charity of the sales price. If the IRS ever audits you, the receipt needs to be included in your records.

For the fortunate few, there are two exceptions to the new actual sales price rules. The circumstances that will give rise to the exceptions seem pretty far fetched, but you might be the lucky donor.

First, you can claim the fair market value as a deduction if the charity significantly uses the vehicle for its own purposes before selling it. For instance, if the charity uses it for a few months to deliver meals or carry out administrative needs, you get the fair market deduction. Make sure you get something in writing from the charity to back up the deduction claim!

Second, you can claim the fair market value deduction if the charity makes material improvements to the vehic...

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