Tax Deduction Answers
Claimed Value Up to $500
If you are claiming up to $500 for your vehicle, the IRS will allow you to arrive at that figure on your own. Additionally, you will receive a donor acknowledgement from the American Lung Association.
Claimed Value Greater Than $500
If you are claiming more than $500 for your vehicle, the IRS will allow you to claim the gross proceeds from the American Lung Association's sale of your vehicle. This does not include the towing expenses.
When your vehicle is picked up it will be taken to a licensed dealer. The majority of vehicles are sold at live auctions. Within 45 days, you will receive a receipt and all documentation required for your tax deduction.
For further information regarding your specific tax questions, we recommend consulting with a tax professional. To understand how your deduction may be affected by your sale price, click on the links below for further information.
The American Lung Association is a licensed car dealer and only resells cars on a wholesale basis. Wholesale prices are typically 15 to 50 percent lower than retail prices. There are many factors that can influence the sale price of your vehicle such as:
- Vehicle age
- Impending Repairs
- High Mileage
IRS Publications Relating to Charitable Vehicle Donations
- IRS Publication 4303: A Donor's Guide to Car Donations
- IRS Publication 526: Charitable Contributions
- IRS Publication 561: Determining the Value of Donated Property
- IRS Form 8283: Non Cash Charitable Contributions (Instructions)
- IRS Form 8283: Non Cash Charitable Contributions
- IRS Publication 4302: A Charity's Guide to Car Donations
- IRS Publication 1098-C: Instructions for Form 1098-C, Contributions of Motor Vehicles, Boats and Airplanes
Page Last Updated: July 25, 2017