Vehicle Donations to CDM are Tax Deductible
Donors will receive a letter upon receipt of their donation to thank them for their gift, and then a second letter upon sale of their vehicle. The second letter includes a Form 1098-C that states the value of the sale, which can be used for tax purposes.
You should always consult with your financial advisor or tax professional to understand the impact of your donation.
However, according to the IRS, "if the vehicle is sold by the charitable organization, the deduction claimed by the donor usually may not exceed the gross proceeds from the sale." Therefore, if you donate a car to CDM that is then sold for $1,000, you should be able to deduct up to $1,000 for your donation.
For more information on tax deductions for vehicles that you donate to CDM, visit the IRS Web site.
If you have previously donated a vehicle to CDM, the IRS has recently updated its regulations. To review that update, please visit: New Rules for Vehicle Donation.
To learn how to donate your vehicle, click here.