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TAX ADVANTAGES
Is my vehicle donation tax deductable?
Yes! All vehicle donations qualify for a tax deduction. In fact, you may even be able to deduct the fair market value of your vehicle at the time of the donation.
How do I determine the value of my tax deduction?
The disposition of your vehicle is what determines the amount you may deduct. Many donated vehicles go through a 72-point safety inspection to determine its best future use. Vehicles determined to be safe and reliable for another one to two years will be repaired at a reasonable cost and awarded to a family in need through Good News Garage's vehicle donation program (learn more about Good News Garage on the about transMISSIONs page). If your vehicle is awarded to a neighbor in need, you are eligible to deduct the fair market value of your vehicle at the time of the donation, as determined by you.
Vehicles with exceptionally high mileage, older models, particular high-end or luxury vehicles, vehicles deemed unsafe or too costly to repair will be sold. In these cases, you are eligible to deduct the amount the vehicle received at the time of the sale. You will receive written notification of the disposition of your vehicle and its sale proceeds, if applicable.
All vehicle donations to Family Resources Community Action are tax deductible. Your tax deduction may even be equal to your vehicle's fair market value, which can mean a deduction worth hundreds or even thousands more than if you were to donate you vehicle to another program.
Where can I learn more about vehicle donation and associated tax benefits?
The Internal Revenue Service has published the following reference: IRS Publication 4303: A Donor's Guide to Vehicle Donations.
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