- January 4, 2010
How Car Donations Values Are Determined
It would interest you to know that there are two main ways that an agency would use to determine the value of the car that you would give to them to support some charity. There is something known as fair market value and this is the top most issue they would give consideration to. This is what the amount of the fair market value would be noted on the receipt that you would be given when you donate the car to the agency.
The fair market value is usually about $500 or less. However, when the value of the car is more than $500, this would be deducted when the car is eventually sold. This should happen in a span of 20 days and you would be duly notified in a statement on the fill amount and the date when the sale took place.
The most important thing that you would need to keep in mind is that you would need to have a very transparent agency for car donations. They would need to update you on all the tax documentation that would be necessary for you to claim any deduction. This is an advantage to make use of.
You can be much better informed when you need to donate car if you can spare a moment of your time and check on the tax laws that apply. You would definitely enjoy what you would come to learn.
Thr IRS allows you to deduct the greater of $500 or what the your car donation is actually sold for.