Who determines what my donated vehicle is worth for a tax deduction?
Under the current tax law, your tax deduction is limited to the sales price of the vehicle once it is sold. This makes it extremely advantageous to you to donate to Giving Heart of America rather than other charities, as we actively maximize your tax deduction and the proceeds available for charitable work. See our Estimate Value page. Is it possible to receive some cash for my car and a tax deduction as well? In general, yes. The IRS recognizes what is called a “bargain sale” to a charitable organization. By way of illustration, say you want to donate a car worth $4000 to a charity, but you need some cash for the car. So, instead of making an outright donation, you offer to sell the car to the charity at a “bargain” price (less than it is worth), say $1000. Assuming the car really is worth $4000 (as demonstrated when the charity sells it for $4000), per the current tax law , your tax deduction would be $3000, the difference between the demonstrated actual value and the bargain price y
