Can I claim my car donation as a tax deduction?

Yes. Habitat for Humanity is a 501(c)(3) nonprofit organization. Contributions, including vehicle donations, may be claimed as deductions on your federal tax return if you itemize on Schedule A of Form 1040.

How much can I deduct?

  • Once Cars for Homes sells your vehicle, the selling price becomes the amount of your donation.
  • If your vehicle sells for more than $500, you may deduct the full selling price.
  • If your vehicle sells for $500 or less, you can deduct the “fair market value” of your vehicle, up to $500.

How do I figure out the “fair market value” of my car?

The following websites can provide this information:

What documentation will I receive for my tax return?

Within 30 days of the sale of your vehicle, Habitat will send you a written acknowledgement/receipt. This receipt will include:

  • The gross selling price of the vehicle (if it sold for greater than $500).
  • Year, make, model and vehicle identification number information.
  • A statement that the vehicle was sold at arms-length between two unrelated parties.
  • A statement that no goods or services were received in return for your contribution.

Where can I get more information?

Consult your tax adviser or refer to any of these IRS Publications: