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 Thank you for considering donating your car to RV for Homeless, a 501(c)(3) nonprofit organization dedicated to providing housing solutions and essential support to those in need. Here's how you can determine the value of your car for donation purposes. 

The first thing we should talk about is what a car donation’s value is today. Prior to 2005 many donors were caught taking advantage of car donations by inflating or overestimating the value of their vehicles. The IRS updated the rules and regulations to make sure that car donation values were being more fairly determined. 

The following are the specifics details used to determine a car donation value: 

 Fair Market Value (FMV) - is the price something would sell for on the open market, alleging that the price would be agreed upon between a willing buyer and a willing seller, with neither being required to act, and both having reasonable knowledge of the relevant facts. (Basically, this means that the buyer and seller both know the condition of the property, in this case the car, and that each private party wants to be part of the transaction and agrees upon the price). Please note- Fair Market Value is not always going to be exactly as a “Guide Book” might suggest. FMV is based on what the vehicle sells for with factors such as condition, location, market trends, etc., and not what it is estimated at. Although “Guide Books” are very helpful in creating a fair sale price, these values are not considered official by the IRS, and in fact, can be much higher than what you can actually expect to receive for your older vehicle.

$500 Deductions- If your car sells for less than $500, then you can claim the deduction equal to the fair market value (the sale price) up to $500. (For example, if your vehicle sells for $300 at auction, then you can claim the $300 tax deduction based off of the FMV that was created by selling the vehicle, or you can claim the $500 tax deduction offered by the IRS as a courtesy.)

Donations Over $500- If your vehicle sells for more than $500, then the car donation value is the SALE PRICE of that vehicle. (For example, if your vehicle sells for $1,200. Then you may claim a $1,200 tax deduction).

Tax Deduction Paperwork- To claim a tax deduction with the IRS, Cars2Charities will provide you with a donation receipt within 30 days of the sale of the vehicle. The following information will be provided:

• A standard receipt with the name, address, and federal tax ID of the charity you selected to receive the proceeds* of the donation.
• Gross Sale Price of your vehicle (Applicable to vehicles that sell for more than $500).
• Year, Make, Model, and VIN (Vehicle Identification Number)
• IRS Tax Form 1098c- with the above information and written acknowledgement that 1. the vehicle was sold to two unrelated parties through an arms-length transaction 2. The vehicle was not traded for goods or services in exchange for the donation (Applicable to vehicles that sell for more than $500).
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 Your car donation will directly support our mission of converting RVs into safe living spaces for homeless individuals and families. Every contribution helps us make a lasting difference in the community.