Donating a car: the tax deduction.

What counts as a qualified vehicle

The rules apply to a car or any motor vehicle manufactured mainly for use on public streets, roads and highways, to a boat, and to an airplane. They do not apply to inventory: a car dealer donating a car held for sale to customers follows the inventory rules instead.

Claimed value over $500

If the claimed FMV is more than $500 and no exception applies, you can deduct the smaller of the gross proceeds from the organization’s sale of the vehicle or the vehicle’s FMV on the date of the contribution. If the FMV was more than your cost or other basis, you may have to reduce the FMV as described for appreciated property.

Form 1098-C

You must attach to your return Copy B of Form 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes (or another statement with the same information), showing the gross proceeds. If you e-file, you attach Copy B to Form 8453 and mail it, or include it as a PDF if your software allows. If you don’t attach it, you can’t deduct the contribution. You must get it within 30 days of the sale, or within 30 days of the donation if Exception 1 or 2 applies.

If the filing deadline is close and you have no Form 1098-C, you can request the automatic 6-month extension on Form 4868, or file on time without the deduction and claim it later on an amended return (Form 1040-X) with Copy B attached.

The two exceptions

• Exception 1. The organization makes a significant intervening use of, or material improvement to, the vehicle before transferring it. You can generally deduct FMV on the contribution date.
• Exception 2. The organization gives the vehicle, or sells it for a price well below FMV, to a needy individual to further its charitable purpose. You can generally deduct FMV. This exception does not apply if the organization sells the vehicle at auction.

Form 1098-C shows whether either exception applies.

Sale price $500 or less

If the organization sells the vehicle for $500 or less and neither exception applies, you can deduct the smaller of $500 or the FMV. If FMV is at least $250 but not more than $500, you need a written statement from the organization acknowledging the donation, with the elements the Pub requires: a description of the property, whether goods or services were provided, and an estimate of their value.

Determining FMV

FMV is the price at which property would change hands between a willing buyer and a willing seller, neither having to buy or sell, and both having reasonable knowledge of the relevant facts. For a car, the publication says to use the price listed in a used car guide for a private party sale, not the dealer retail value, and the FMV may be less if the car has engine trouble, body damage, high mileage or excessive wear. It is the same as the guide price only if the guide lists a car of the same make, model and year, sold in the same area, in the same condition, with similar options and warranties. In its example, a poor-condition car with a $1,600 dealer retail value and a $750 private party price has an FMV of $750. Except for small, inexpensive boats, boats should be valued by a marine surveyor or appraiser. You do not need a written appraisal for a qualified vehicle if your deduction is limited to the gross proceeds from its sale and you have a contemporaneous written acknowledgment.

The publication’s example

You donate a used car you bought 3 years ago for $9,000. A used car guide shows FMV of $6,000, but Form 1098-C shows the car sold for $2,900. Neither exception applies. If you itemize, you deduct $2,900, and you must attach Form 1098-C and Form 8283.

Reporting

You itemize on Schedule A (noncash gifts go on line 12), and a total noncash deduction over $500 requires Form 8283. If the car’s FMV is less than your basis, which is common for cars, your deduction is limited to FMV; you cannot deduct the difference. The AGI limits then apply as for any noncash gift.

Related

See donating appreciated property, the AGI limits and the standard vs itemized deduction calculator.

Sources

• IRS Publication 526 (2025), Charitable Contributions: the sections cited on this page. Read November 2, 2026.
• IRS Tax Exempt Organization Search: the tool Pub 526 names (IRS.gov/TEOS) for checking whether an organization can receive deductible gifts. Pointed to, not queried.

Edition read: Publication 526 (2025), for use in preparing 2025 returns. Its “How To Get Tax Help” section notes that P.L. 119-21 (July 4, 2025) enacted tax reform, with updates at IRS.gov/OBBB; this page states no 2026 changes that the publication text does not spell out, so check the 2026 edition when it is released. Where the publication refers to Pub 544, Pub 561 or the Instructions for Form 8283 for more detail, this page does not restate those documents. This page summarizes the publication and does not replace it.