![]() ![]() ![]() If box 5a or 5b is checked off on Form 1098-C, your donation is typically eligible for an exception, and you can typically deduct the car's value. Decides to give the vehicle to a needy individual at no charge or at a price that's less than it is actually worth.Makes "material" improvements to it before selling it.Exceptions to the sale proceeds limitationĪ vehicle donation deduction over $500 is based on its fair market value and isn't restricted by the sales amount if the charity does any of the following: The amount that the charity sells the vehicle for is in box 4 of Form 1098-C. In order to receive a deduction for a donated vehicle that is valued at more than $500, you'll need Form 1098-C for completing your tax return. If you donate a vehicle to a charity and its fair market value is more than $500, generally, the maximum deduction you can take is the smaller of the amount that the charity sold the vehicle for or the car's value on the day you donate it. ![]()
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