Car donation to charities may not be the best method to get a tax write off for the value of your used vehicle or to maximize the money given to your chosen charity!

Read below for further details.

Fact - Some car donation charities have mistakenly claimed that donors can deduct the full market value of a used car, van, truck, SUV, boat or motorcycle at values found in guides like "Kelly Blue Book". When estimating the value of your used vehicle, guides like these should only be used as a starting point. Caution should be exercised on the value being assessed and stated. Note that the IRS only allows a deduction for the fair market value of the car which may be substantially less than the "Kelly Blue Book" value depending on the condition of the vehicle being donated.

What is fair market value used vehicle donation? Fair market value is the price a willing impartial buyer would accept for the car. This also takes into consideration that neither party is compelled to buy or sell, and both parties have reasonable knowledge of relevant facts that make up the transaction.

What are the new IRS tax rules for car donation to charities? The American Jobs Creation Act of 2004 will alter the rules for the contribution of used motor vehicles, boats and planes after Dec. 31, 2004. This is a summary of impacts to your next car donation. In 2005, if the claimed value of the donated motor vehicle, boat or plane exceeds $500 and the item is sold by the charitable organization, the taxpayer is limited to the gross proceeds from the sale.

What this means to you. If the fair market value for the donation is over $500, then you must wait until the actual vehicle is sold by the charity before claiming a donation value over the $500 dollars. For more info see the IRS home page at www.IRS.gov

More IRS used car donation information. The IRS expects to issue more guidance on this rule early in 2005. To find out if new guidance has been issued see the IRS web site. Otherwise see the following IRS documentation urging caution in vehicle donation: IRS Officials Urge Care for Those Making a Car Donation.

How do I get a accurate fair market value assessment for my used vehicle?
Bring your used auto to Auto Trend. We will give you a free used vehicle value assessment. This way you know the value of your used car is accurate.
Use our Find Us page to get directions to our office. Or use our Contact Us page on this site. Please be sure to make an appointment by contacting us by this website or calling 1-734-261-1119.

How can I donate more money directly to my charity without donating my car?
Sell your used car, used truck, used van, used station wagon, used SUV or used motorcycle to Auto Trend for cash by using our Sell page on this site. We will give you a check for the fair market value for your used vehicle. From the sale of your used vehicle to Auto Trend, you can then give the proceeds to the charity that best suits you. This way the charity does not have to use any of the proceeds to pay for management and administrative costs to sell your vehicle.
The result: more money going directly to the people who need it.