Donors will no longer be responsible for determining the deductible value of their donation. Instead, they will receive IRS Form 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes if the proceeds from the sale exceed $500, stating the amount of the gross proceeds from the sale of the donated vehicle. The amount listed on IRS Form 1098-C will be the gross proceeds of the deductible donation.
Yes, our driver will issue a receipt at the time of pick-up. This is not your final tax receipt unless the sale of your vehicle does not exceed $500. This initial acknowledgement will indicate your name as well as the year, make, model and condition of the car you are donating. It will be your only receipt if your vehicle sells for less than $500. An IRS Form 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes will be mailed to you within 30 days of the sale stating the amount of gross proceeds received from your car, provided your vehicle sold for more than $500. This will be your tax receipt for your charitable contribution.
The value is determined by the gross proceeds raised from the sale of the donated vehicle. You no longer have the burden of determining the value yourself.
Non-profits will have additional paperwork in reporting the gross proceeds raised from the sale of the vehicle to the donor and IRS. The process of obtaining the cash donation from the vehicle remains the same.
According to the tax law effective January 1, 2005, if the claimed value of the donated vehicle exceeds $500, the taxpayer is limited to the gross proceeds of the sale.
Effective January 1, 2005, you will no longer be required to have vehicles appraised. The value you may claim will be the amount of gross proceeds received from your vehicle.