If you contribute a car, boat, or aircraft to a charitable organization, you must determine its fair market value.

Commercial firms and trade organizations publish guides, commonly called “blue books,” containing complete dealer sale prices or dealer average prices for recent model years. These guides provide estimates, including adjustments for unusual equipment, unusual mileage, and physical condition. The prices are not “official” and these publications are not considered an appraisal of any specific donated property, but they do provide clues for making an appraisal and suggest relative prices for comparison with current sales and offerings in your area.

For low value vehicle donations you can claim the fair market value up to $500 without any additional paperwork, together with the receipt we will provide at the time of the pickup.

If your vehicle is worth more then $500, your deduction will be limited to the actual sale price. We will work to get top dollar for your car donation, however most vehicles are sold “wholesale” at auctions, dealerships etc. and are frequently sold for less then the blue book value.

Vehicles in good running order or vehicles that can be significantly improved before they are sold can generally claim your car’s fair market value. Please call us at 1-800-546-7050 to verify if this would be the case for your vehicle.

Determining the value of donated property

This publication is designed to help donors and appraisers determine the value of property (other than cash) that is given to qualified organizations. It also explains what kind of information you must have to support the charitable contribution deduction you claim on your return:IRS Publication 561

Appraisals: generally, if the claimed deduction for an item or group of similar items of donated property is more than $5,000, other than money and publicly traded securities, you must get a qualified appraisal from a certified appraiser, and you must atForm 8283tach an appraisal summary (Section B of Form 8283) to your tax return.

IRS Publication 1771– Charitable Contributions – Substantiation and Disclosure: This publication explains the federal law for organizations (such as charities and churches) who receive tax-deductible contributions and for taxpayers who made contributions.