Charitable Contributions of Vehicles
- The amount of
deduction for charitable contributions of vehicles (also boats and
airplanes) for which the claimed value exceeds $500, depends upon the
use of the vehicle by the donee organization.
- Where the claimed
value of a vehicle exceeds $500, the donee must furnish a
contemporaneous written acknowledgment that must be attached to the
taxpayer?s return.
- The charity sells
the vehicle ? The receipt must identify the gross proceeds from the
sale and a statement that the deductible amount may not exceed the
gross proceeds (Form 1098-C).
- If the Vehicle is not sold by the charity:
a. The receipt must identify the intended use or material improvement of the vehicle and the duration of such use.
b.
With a certification by the charity that the vehicle would not be
transferred for money or other property or services before completion
of the use or improvement, which
c.
In this case, the donor?s deduction is not limited to the gross sales
proceeds, but instead can be valued using any reasonable method,
including the use of an established used care priding guide.
Charities
receiving contributions of vehicles with a value exceeding $500 are
required to provide the acknowledgment receipt to the donor (within 30
days of the sale or within 30 days of the contribution if the charity
retains the vehicle for its use) and also to provide the IRS with the
information contained in the acknowledgment. 
