All vehicle donations to Good News Garage are tax deductible. Your tax deduction may even be equal to your vehicle's fair market value., which can mean a deduction worth hundreds or even thousands more than if you were to donate to another car donation program. If your vehicle is awarded to a family in need, you are eligible to deduct the fair market value. Each donor is responsible for determining this amount.
If your car is sold, GNG will provide you with official notification of the actual sale amount. If your car sells for $500 or more you are eligible to deduct the amount equal to the gross proceeds from the vehicle's sale. Cars selling for less than $500, are also eligible for a tax deduction, up to a maximum of $500.
Please visit www.irs.gov/pub/irs-pdf/p4303.pdf, "A Donor's Guide to Vehicle Donations" for more information.
The tax deduction chart below 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.
Cómo funciona la ley de impuestos?
Donate a car, truck or van by calling toll-free 877.GIVE.AUTO (877.448.3288) or donate your car online.
Donated Car Analysis
Good News Garage inspects, repairs and awards donated cars, trucks and vans to low-income families struggling to become financially independent. Cars in significant disrepair, with excessive mileage, too costly for a client to maintain or otherwise not appropriate for a family will be liquidated.
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Qualified low-income family
When a car is provided to a low-income family, the car donor may deduct the 'fair market' value, which is defined as what that car could have sold for it on the open market. Please use the Kelley Blue Book, NADA or Edmunds links above to determine your donated car's value. The 'fair market' value is almost always higher than what you can receive for your car at auction.
After the vehicle is delivered to a client, a Good News Garage Vehicle Donation Coordinator will contact you to record your social security number. This information is required by the IRS to process your tax paperwork. You are not required to provide this information if you do not plan to claim your vehicle donation as a tax deduction.
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Auction
Donated vehicles that are either too costly to repair, in severe disrepair, not a good match for families in need as well as certain high-end luxury vehicles are liquidated.
The proceeds from the the sale of these cars are used to inspect, repair and fuel vehicles that will go to families in need.
The car donor may deduct the gross proceeds from the vehicle's sale. In accordance with IRS regulations, Good News Garage will provide vehicle donors a completed IRS Form 1098-C for all vehicles that sell for greater than $500.
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