Government Car Donation

Determining the Amount You Can Deduct

The following rules on deductibility apply to donations of

qualified vehicles. A qualified vehicle is any motor vehicle

manufactured primarily for use on public streets, roads,

and highways; a boat; or an airplane. However, a vehicle

held by you primarily for sale to customers, such as inven-

tory of a vehicle dealer, is not a qualified vehicle. If you

donated a non-qualified vehicle, see Publication 526 for

the rules and limits that apply to property donations.

Generally, the amount you may deduct for a vehicle

contribution depends upon what the charity does with

the vehicle as reported in the written acknowledgment

you receive from the charity. Charities typically sell the

vehicles that are donated to them. If the charity sells

the vehicle, generally your deduction is limited to the

gross proceeds from the sale. However, there are certain

exceptions, described below.