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Vehicle Donation Information Van Buren AR

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
(479) 474-8862
2105 D FAYETTEVILLE rd
VAN BUREN, AR

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Tax-Rite Income Tax Svc
(479) 410-1040
2509 Alma Hwy
Van Buren, AR

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H&R Block
(479) 452-2410
8616 ROGERS Ave
FORT SMITH, AR

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H&R Block
(479) 646-2022
2500 S ZERO ST
FORT SMITH, AR

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Jackson Hewitt
(479) 632-0800
415 West Cherry Street, Unit 100
Alma, AR

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Jackson Hewitt
(479) 474-7797
2131 Fayetteville Rd 3
Van Buren, AR

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H&R Block
(479) 783-0751
3911 N O ST
FORT SMITH, AR

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Liberty Tax Service
(866) 871-1040
2600 Zero St # F
Fort Smith, AR

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Jackson Hewitt
(479) 784-9669
1920 Dallas Street
Fort Smith, AR

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H&R Block
(479) 632-3660
641 hwy 71 N STE 104
ALMA, AR

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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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