Business Tax Recovery Logo


Vehicle Donation Information Horn Lake MS

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.

H&R Block Inside Lynchburg Collection
(662) 781-3715
5842 GOODMAN RD
HORN LAKE, MS

Data Provided by:
Solution Services
(901) 345-2550
7915 Highway 51 N
Southaven, MS

Data Provided by:
H&R Block
(901) 346-8320
1200 SOUTHLAND MALL
MEMPHIS, TN

Data Provided by:
3T Solutions
(901) 774-6351
902 Polk Ave.
Memphis, TN
 
H&R Block
(901) 274-6640
634 S BELLEVUE blvdSTE 101
MEMPHIS, TN

Data Provided by:
Liberty Tax Service
(866) 871-1040
3048 Goodman Rd W
Horn Lake, MS

Data Provided by:
301 Tax Svc
(662) 342-7676
1200 Main St
Southaven, MS

Data Provided by:
H&R Block
(901) 368-5228
4672 KNIGHT ARNOLD rd
MEMPHIS, TN

Data Provided by:
Mobile Tax Svc
(901) 458-0956
809 S Highland St
Memphis, TN

Data Provided by:
H&R Block
(901) 366-2001
6120 HICKORY RIDGE MALL
MEMPHIS, TN

Data Provided by:
Data Provided by:

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...

Click here to read the rest of this article from BusinessTaxRecovery.com