Tax reporting for DAV car donations
As we draw closer to the April tax filing deadline, if you’ve donated a car to DAV, you may be evaluating if you have all of your tax receipts in order. Among the most popular questions from donors are: “How do I get another copy of my tax receipt?” and “What is a 1098c form?”
This article outlines general information about these questions. We also encourage you to check out the IRS Donor Guide to Vehicle Donations. This pamphlet is a great resource.
Donor FAQs on CAR Donation Tax Reporting
**For personal tax related questions, donors should consult a tax advisor.**
Q. How is the value of my tax deduction determined?
Most cars are sold through local wholesale auctions, and we work to get the highest return per vehicle. According to the IRS Guidelines, donors may claim fair market value for their car donation up to the actual sale value.
Q. What if a car sells for $500 or less?
A special rule may apply if the donated car sells for $500 or less. In this case, a deduction for the lesser of the vehicle’s fair market value on the date of the contribution may be claimed, or $500, provided you have written acknowledgement (i.e. this is the initial donation receipt or the thank-you letter you received once the donation process is complete).
DAV donors are mailed a thank-you letter within 30 days of the sale of the car, which serves as a tax receipt.
Q. What if a car sells for over $500?
If a car is sold for more than $500, the maximum amount of your deduction will be the sales price of the car which will be listed on the IRS Form 1098-C.
DAV will need the donor’s tax identification number in order to complete and mail the donor an IRS Form 1098-C, ‘Contributions of Motor Vehicles, Boats, and Airplanes’.
DAV donors typically get this paperwork within 30 days of the sale stating the amount of gross proceeds received from the donation (so long as the donor provided their information upfront to complete the form).
Q. What if a car is valued over $5,000?
The value a car donor may claim will be the amount of gross proceeds received from their car.
If the car sells for more than $5,000, the donor will need to complete Section B of IRS Form 8283 and obtain an acknowledgment signature on the form prior to claiming the deduction, and the completed form will need to be included with the donor's income tax return.
Attention DAV CAR Donors!
If you never received your receipt, or need a copy of the 8283 form, or would like a replacement receipt, please call us at 833-CAR-4DAV (833-227-4328) during regular hours of operation and we would be happy to help you.
Would you like a tax deduction next year? Donate your car to DAV. Call us toll free at 833-CAR-4DAV (833-227-4328) seven days a week or submit the secure online form. Click the button below to visit our Online Vehicle Donation page:
