Did you or are you planning on donating a car to charity?
If so, the income tax rules can be complicated. As a general rule, the donor’s charitable deduction cannot exceed the proceeds that the charity receives from the auto. Donors may use a fair-market-value estimate in limited cases. Organizations that receive a donated car valued at over $500 must send Form 1098-C to the donor and this form must be attached to your tax return.
If you have any questions on car donations, please contact our office.