Car Donation faq's
Donating your car to Jim’s Classic Garage & Auto Museum can result in significant tax savings. The Internal Revenue Service (IRS) requires you to calculate your deduction in one of two ways: The vehicle’s sales price or fair market value (FMV). FMV is determined by consulting several IRS-acceptable car estimation sources.
What are the benefits of donating my car to Jim’s Classic Garage & Auto Museum?
There are many reasons to consider donating your car to an IRS-recognized non-profit:
First, it helps the environment. In 2017 there were 269.7 million registered cars in the US, with an average age being 11.6 years old. Many of the cars donated every year are end-of-life vehicles (ELVs). The automobile is the most recycled consumer product in the world with over 25 million tons of materials recycled from old cars. Almost the entire car can be be sold, re-purposed, or recycled. In the U.S and Canada, the car recycling world produces enough steel to produce nearly 13 million cars each year.
Second, your donation goes to support the work of the teaching museum. Jim’s Classic Garage & Auto Museum teaches students the art and science of restoring classic cars. The curriculum and the hands-on approach (Freestyle Learning) emphasizes not only skill development, but personal responsibility, respect and hard work. Mentoring programs have been proven to reduce crime and help students enter the workforce more successfully.
Finally, car donation makes sense financially. You can legally use your deduction to reduce the amount of your federal tax obligations.
How does Jim’s Classic Garage & Auto Museum Determine the amount of my car’s value?
Generally, fair market value is the price a willing buyer would pay and a willing seller would accept for the vehicle. Your car’s value is determined after Jim's Classic Garage & Auto Museum consults a variety of IRS-approved estimation sources like NADA and Kelly’s Blue Book. Your deduction is either the sale price of the car or the fair market value. If Jim’s Classic Garage & Auto Museum sells the car at a discount to a needy individual or keeps the car for its own internal use, you can claim a deduction for its fair market value.
Currently, IRS rules state a vehicle's fair market value can be deducted under four specific conditions. The first is when a charity auctions the vehicle for $500 or less, the lower amount of either the fair market value or $500 can be claimed. The second is when the charity intends to use of the vehicle in its operations. The third is when the charity intends to make a material improvements to the vehicle, not just routine maintenance. Fourth is if the charity gives or sells the vehicle to a needy individual at a price significantly below fair market value.
How do I claim my deduction?
Report the amount of your deduction on line 17 of Schedule A. Since you can only claim a deduction for your car donation when itemizing, the total of all eligible expenses on Schedule A must exceed the standard deduction amount for your filing status.
Complete Form 8283 if your car donation deduction is more than $500. If your deduction is between $501 and $5,000, you must complete Section A. If your deduction is greater than $5,000, you must complete Section B. If you complete Section B, you must also obtain a written appraisal as documentation.
What paperwork does the IRS require for me to claim my deduction?
First you Must Itemize Your Return. Second, for the donation to qualify as a tax deduction it needs to be made to a qualified organization as recognized by the IRS. Jim’s Classic Garage & Auto Museum is a teaching museum and is registered as a 501(c)(3) 2.
The documentation you receive from Jim’s Classic Garage & Auto Museum will include your name, vehicle identification number, date of donation and a statement describing the goods and services received, if any. For further information, please consult IRS Publication 4303.