that depends on its value - sorry for the length of the details but people that were overstating values resulted in more stringent requirements and documentation to get the deduction
by the way the deduction goes on schedule A - itemized deductions, so your total itemized deductions must exceed your standard deduction to get a tax benefit
Qualified Vehicle Donations
A qualified vehicle is any motor vehicle manufactured primarily for use on public streets, roads, and highways. If you donate a qualified vehicle with a claimed value of more than $500, you cannot claim a deduction unless you attach to Form 8283 a copy of the contemporaneous written acknowledgment you received from the donee organization. The donee organization may use Copy B of Form 1098-C as the acknowledgment. An acknowledgment is considered contemporaneous if the donee organization furnishes it to you no later than 30 days after the:
• Date of the sale, if the donee organization sold the vehicle in an arm's length transaction to an unrelated
party; or
• Date of the contribution, if the donee organization will not sell the vehicle before completion of a material
improvement or significant intervening use, or the donee organization will give or sell the vehicle to a needy
individual for a price significantly below FMV to directly further the organization's charitable purpose of relieving the poor and distressed or underprivileged who need a means of transportation.
For a donated vehicle with a claimed value of more than $500, you can deduct the smaller of the vehicle's
FMV on the date of the contribution or the gross proceeds received from the sale of the vehicle, unless an exception applies as explained below. Form 1098-C (or other acknowledgment) will show the gross proceeds from the sale if no exception applies. If the FMV of the vehicle was more than your cost or other basis, you may have to reduce the FMV to figure the deductible amount, as described under Reductions to FMV, earlier.
If any of the following exceptions apply, your deduction is not limited to the gross proceeds received from the
sale. Instead, you generally can deduct the vehicle's FMV on the date of the contribution if the donee organization:
• Makes a significant intervening use of the vehicle before transferring it,
• Makes a material improvement to the vehicle before transferring it, or
• Gives or sells the vehicle to a needy individual for a price significantly below FMV to directly further the
organization's charitable purpose of relieving the poor and distressed or underprivileged who need a means of transportation.
Form 1098-C (or other acknowledgment) will show if any of these exceptions apply. If the FMV of the vehicle
was more than your cost or other basis, you may have to reduce the FMV to figure the deductible amount, as
described under Reductions to FMV, earlier.
Determining FMV. A used car guide may be a good starting point for finding the FMV of your vehicle. These
guides, published by commercial firms and trade organizations, contain vehicle sale prices for recent model
years. The guides are sometimes available from public libraries or from a loan officer at a bank, credit union, or finance company. You can also find used car pricing information on the Internet.
An acceptable measure of the FMV of a donated vehicle is an amount not in excess of the price listed in a
used vehicle pricing guide for a private party sale of a similar vehicle. However, the FMV may be less than that
amount if the vehicle has engine trouble, body damage, high mileage, or any type of excessive wear. The FMV of a donated vehicle is the same as the price listed in a used vehicle pricing guide for a private party sale only if the guide lists a sales price for a vehicle that is the same make, model, and year, sold in the same area, in the same condition, with the same or similar options or accessories, and with the same or similar warranties as the donated vehicle.
Example. Neal donates his car, which he bought new for $20,000. A used vehicle pricing guide shows
the FMV for his car is $9,000. Neal receives a Form 1098-C showing the car was sold for $7,000. Neal can
deduct $7,000 and must attach Form 1098-C to his return.
More information. For details, see Pub. 526 or Notice 2005-44. Notice 2005-44, 2005-25 I.R.B. 1287, is
available at IRS.gov/irb/2005-25_IRB/ar09.html.
