About Tax Deductions
Will I receive a tax deduction for donating my vehicle?
The sale of your vehicle will support a 501(c)(3) charitable organization so it is tax-deductible. Since each donor’s tax situation is different we recommend that you consult your tax professional. To learn more about how vehicle donations affect your tax status please visit www.irs.gov and search for “car donation”. The IRS has several articles and tips that will answer questions about your specific situation. The following resources may be useful in answering questions about your particular tax situation.
How will the value of my vehicle be determined for tax purposes?
As of January 1, 2005 the IRS has taken the guesswork out of determining the value of your vehicle for tax purposes. If your vehicle sells for less than $500 you can claim the fair market value of your vehicle up to $499. If your vehicle sells for more than $500 you can deduct the actual sale price of your vehicle. Cars4KC will provide you with a receipt after your vehicle is sold. Also, note a social security number is not required if your vehicle sells below $500.
When will I receive a receipt for tax purposes?
Your receipt will be generated as soon as the vehicle sells. In most cases, you can expect a receipt within 30 days from the time we pick up your vehicle.