Maximize Your Car Donations

Maximize Your Car Donations

As another tax season approaches, taxpayers are always trying to maximize deductions. If you have an automobile that you are not currently using, you may want to consider donating it to a 501(c) (3) charitable organization.  A listing of 501(c) (3) organizations can be found on the IRS website (https://www.irs.gov/Charities-&-Non-Profits/Exempt-Organizations-Select-...). The amount deductible as a non-cash itemized donation is limited by what the organization does with the automobile and the automobiles fair market value. As always, your non-cash itemized deduction is subject to income limitations.

If a 1098-C is a requirement for your deduction, you should receive the form from the charitable organization within 30 days of sale or 30 days after donation.  

Since non-cash donations are one of the common triggers for an audit, it is imperative that you keep thorough documentation of a car donation.  Included in this documentation should be a copy of the title change. Below is a chart that shows the amounts that can be deducted and the documentation needed to substantiate the deduction. Please call our office with any questions.   

 

Back To List
The Cultural Alliance of Greater Washington has worked with Bormel, Grice & Huyett, P.A., since 1988. Their knowledge of the arts and the arts community make their services invaluable. They can translate accounting terminology into a comprehensive language. For many organizations, the accounting firm of Bormel, Grice & Huyett provides the financial "information bridge." We whole-heartedly recommend Bormel, Grice & Huyett, excellent accountants who care about our arts organizations.
Jennifer Cover Payne, Executive Director, Cultural Alliance of Greater Washington

Certifications / Associations