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Vehicle Donation Information Picayune 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.

Jackson Hewitt
(601) 798-1040
790 Memorial Blvd Ste D
Picayune, MS

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Breazeale Saunders & O'Neil Ltd
(601) 969-7440
120 N Congress St Ste 300
Jackson, MS

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Jackson Hewitt
(601) 766-3197
933 Mill Street
Lucedale, MS

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H&R Block
(601) 727-2113
35 HWY 513
ROSE HILL, MS

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Jackson Hewitt
(662) 363-3200
859 River Road
Tunica, MS

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Jackson Hewitt
(228) 896-3433
1909 Pass Rd,Ste A-4
Gulfport, MS

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Margaret Dear Tax & Accounting
(601) 939-5260
2731 Old Brandon Rd
Pearl, MS
 
ASAP1040 TAX SERVICE
(601) 953-6344
1301 HWY 489
LAKE, MS
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Jackson Hewitt
(601) 924-2040
121-A Highway 80 E
Clinton, MS

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Jackson Hewitt
(228) 312-0093
2961 Bienville Blvd
Ocean Springs, MS

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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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