Tax Receipts For Car Donations
Tax Receipts & 1098cs
When can I expect to receive my tax receipt?
This depends on how VFC uses the donated vehicle:
- Vehicles awarded to a family: Donors will be sent a tax receipt within 30 days of the vehicle’s pick up
- Vehicles sold at auction: Donors will be sent a tax receipt within 30 days of the vehicle’s sale
- Vehicles (without major repairs) sold through Freedom Wheels: Donors will be sent a tax receipt within 30 days of the vehicle’s sale
- Vehicles (with major repairs) sold through Freedom Wheels: Donors will be sent a tax receipt within 30 days of pick up, once VFC staff has an estimate of the major repair cost
My donated vehicle was awarded to a family and I just received my tax receipt and 1098c. Why did Vehicles for Change leave lines 4b (date) and 4c blank (amount sold) on the 1098c form?
The IRS stipulates that VFC is not able to enter anything into 4C if the vehicle is transferred to a needy individual for significantly below Fair Market Value. Please click on the IRS link for more information.
Why doesn’t Vehicles for Change provide a value for the Fair Market Value deduction to donors?
Per IRS regulations, it is up to the donor to determine the car’s condition at the time of donation. Donors can use an online tool such as the “What’s My Current Car Worth” feature www.kbb.com to determine their vehicle’s worth.
What happens if my car sells for under $500?
If an exception to the gross proceeds limit applies to your deduction or if you are claiming a deduction less of $500 or less, you will need to determine your vehicle's fair market as of the date of contribution. Generally, fair market value is the price a willing buyer would pay and a willing seller would accept for the vehicle when neither party is compelled to buy or sell, and both parties have a reasonable knowledge of the relevant facts. Please click on A Donor's Guide to Vehicle Donations for more information.
My donated car was considered a major repair, how do I claim this on my taxes?
Donors of cars that had significant repairs made by VFC can deduct the Fair Market Value minus the estimated cost of repairs. The 1098c form that will be sent to the donor will not have selling date or an amount sold (Section 4b and 4C).