Car donation tax deduction information
Proceeds from the sale of your donated vehicle will help Habitat families in the United States build strength, stability and self-reliance. Plus, it’s fast and easy to do, and your donation will qualify for tax deductions. Take a look at our most common tax questions below.
“The process is easy and simple and I even qualified for a tax deduction!”
Frequently asked questions about vehicle donation tax benefits
Can I claim a tax deduction on my car donation to Habitat?
Yes. Habitat for Humanity is a 501(c)(3) nonprofit organization. Contributions, including vehicle donations, may be claimed as deductions on your federal tax return, if you itemize.
How much can I deduct?
Once your vehicle is sold, the selling price determines the amount of your donation. If your vehicle sells for more than $500, you may deduct the full selling price. If your vehicle sells for $500 or less, you can deduct the “fair market value” of your vehicle, up to $500.
How do I figure out the fair market value of my car?
The following websites can help you calculate your vehicle’s fair market value.
What documentation will I receive for my tax return?
Within 30 days of the sale of your vehicle, Habitat will send you a written acknowledgement/receipt. This receipt will include:
- The gross selling price of the vehicle, if it sold for greater than $500.
- Year, make, model and vehicle identification number information.
- A statement that the vehicle was sold at arms-length between two unrelated parties.
- A statement that no goods or services were received in return for your contribution.
Where can I get more information?
You can learn more by reviewing the IRS documents below or by consulting with your tax adviser.
- Publication 4303, A donor’s guide to vehicle donations (147kb .pdf)
- Publication 526, Charitable contributions (1.2mb .pdf)
- Publication 561, Determining the value of donated property (1mb .pdf)
- Form 8283, Noncash charitable contributions (256kb .pdf)
- Form 8283, Instructions (63kb .pdf)
This information was provided courtesy of our donation wizard, a service of Advanced Remarketing Services. If you have more car donation questions, visit our FAQ page or email carsforhomes@habitat.org.
If you are ready to donate a vehicle, start your donation online or call 1-877-277-4344.
