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Donating Vehicles

Special tax rules apply for taxpayers donating vehicles. Many taxpayers donate autos, boats and planes and can deduct the amounts relating to the donations on their income tax return.

How much is the tax deduction of donations of autos, boats, and planes?

Charitable contributions of autos, boats, and planes for which the claimed value exceeds $500 will depend on how the donated asset is used by the receiving charity.

If the receiving charitable organization sells the asset without making significant use of it, the tax deduction is limited to the gross sales proceeds received by the charity, not the fair market value.

If the charitable organization intends to make significant use of the donated asset, the charity must estimate the fair market value at the time of donation.

What tax forms are used for donation of vehicles?

The charity will send the taxpayer a written acknowledgement on the tax form 1098C, Contributions of Motor Vehicles, Boats, and Airplanes. This IRS tax form 1098C must be attached to the IRS tax form 8283 for each donated vehicle reported at over $500 value.

Donating Vehicles

Standard mileage rate for charitable use of a vehicle

The standard mileage rate for charitable use of a vehicle is 14 cents a mile.