How donating for a tax deduction works

First of all, I am not a tax advisor nor an accountant - do not trust anything I tell you, consult a professional before proceeding. I'm simply going to relate my understanding, take it for what it's worth.

My understanding is that if you itemize deductions on a US income tax return, you can deduct the "fair market value" of a contribution to qualified charities. This applies to vehicles, airplanes, dog food, ... anything that a charity is willing to take. Usually the vehicle does not have to run and will be picked up. If the value is over $500 you need to get a receipt.

Of course there are many other factors to be considered, I will not try to list them as there are many sites on the net with information on this.

Some references:

  • Good article with details
  • Some questions and answers about donating your vehicle
  • Free Online Used Vehicle Appraisal
  • Main page