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sure to attach the acknowledgment and Form 8283, Noncash Charitable Contributions (see
below), to your return.
Written Acknowledgment for a Vehicle Contribution Deduction of $500 or Less,
If you are claiming at least $250 but not more than $500 as the value of your vehicle, the acknowl-
edgment must include the name of the charity, a description (but not value) of your vehicle, and
one of the following:
n
a statement that no goods or services were provided by the charity in return for the donation, if
that was the case,
n
a description and good faith estimate of the value of goods or services, if any, that the charity
provided in return for the donation, or ,
n
a statement that goods or services provided by the charity consisted entirely of
intangible religious benefits, if that was the case.
Time and Manner of Providing Acknowledgment — You must obtain the written acknowledgment
on or before the earlier of the date you file your return for the year you donated the vehicle, or the
due date, including extensions, for filing the return. A charity can provide you with a paper copy
of the acknowledgment, or it can provide the acknowledgment electronically, such as via an email
addressed to you. Do not attach the acknowledgment to your income tax return; instead, retain it
with your records to substantiate your donation.
Determining the Fair Market Value of Your Vehicle,
If an exception to the gross proceeds limit applies to your deduction or if you are claiming a
deduction of $500 or less, you will need to determine your vehicle’s fair market value as of the
date of the 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 reasonable knowledge of the relevant facts.
If you use a vehicle pricing guide to determine fair market value, be sure that the sales price
listed is for a vehicle that is the same make, model, and year, sold in the same condition, and
with the same or substantially similar options or accessories, as your vehicle. Moreover, the
fair market value of a vehicle cannot exceed the price listed for a private-party sale.
EXAMPLE: You donate your car to a local charity that provides you with an acknowledgment
certifying that it intends to make a significant intervening use of the car. Your credit union
representative told you that the price listed for a private-party sale in a vehicle pricing guide
could be as high as $1,600. However, your car needs extensive repairs, and after some checking,
you find that you could only sell your car for $750. $750 is the fair market value of the car.
For more information on determining the value of your vehicle, see Publication 561, Determining the
Value of Donated Property.