Good News Garage is a win-win solution for donors, car recipients and the community, and we strive to make the donation process as easy as possible. Good News Garage - LSS, Inc. is a 501(c)(3) registered nonprofit organization with the Internal Revenue Service and all vehicle donations to Good News Garage are tax deductible.
Want to know more about the tax deduction when donating your car? Here's how it works...
STEP 1: Donate your car, truck or van
Vehicles (cars, trucks, vans, and also motorcycles, scooters, RVs, lawn tractors, boats and planes!) may be donated to Good News Garage in any New England state, and we may be able to accept donations beyond the New England are as well. Donate by calling toll free 877.GIVE.AUTO (448.3288) or donate online.
STEP 2: Good News Garage inspects your vehicle
Qualified mechanics may conduct a 72-point inspection of the car, truck or van that has been donated. Depending on a number of factors, including the mileage and cost of repairs needed, Good News Garage determines how to process the vehicle.
STEP 3: Good News Garage processes your vehicle
There are two scenarios how your car, truck or van is processed. We need two important things to provide safe and reliable vehicles to families: a used vehicle and the funding for repairs. All donations are therefore vital to our mission and are needed to help New England families in need.
Scenario 1: Your vehicle is provided to a low-income family. Lack of transportation is a major barrier to employment and education for the families we serve. When a vehicle is provided to a family in need, the donor may deduct the fair market value (defined as the price the car would have sold for on the open market). To determine your vehicle's value, please refer to the Kelley Blue Book or NADA websites.
Scenario 2: Your vehicle is sold at auction to benefit Good News Garage. Donated luxury cars, cars too expensive to repair, or cars that are not a good match for families in need are sold at a local auction. Money from these sales help pay for repairing vehicles for families. When a car, truck or van goes to auction, the donor may deduct what the car sold for, or $499, whichever is greater.
STEP 4: Good News Garage sends you a tax deduction letter
Once your car donation has been processed (which can take 8-12 weeks total) you will receive a letter in the mail outlining what happened to your vehicle and how much you can deduct on your taxes. Please note that as required by the IRS, Good News Garage will need to include your social security number in your tax deduction paperwork if your tax deduction is more than $500.You do not need to provide your social security number if you do not want a tax deduction.
Please refer to IRS Publication 4303: "A Donor's Guide to Vehicle Donations" for more information.
This tax deduction information is meant to give a general overview of the car donation tax law. Please consult with a professional tax preparer before donating your car, truck or van.