How Much Will My Tax Deduction Be If I Donate My Car? Posted By : Karen Campese

When a person calls a charity to ask about car donation, they usually ask what their tax deduction will be if they do donate car. The answer is a little complicated. When you donate car to charity the amount you can claim on your taxes depends on two things; the fair market value of your car and what the charity does with the car. The fair market value of your car is the amount you could sell it for on the day you donate car and is not more than the amount you paid for the car; in its present condition; without any repairs.