Tax Deductions For Donated Vehicles Must Be Proven

These days when claiming a tax deduction on a donated vehicle you must make every effort to prove its value. Whether it be a car, boat or even a plane the fair market value is no longer acceptable. You must hold in your hand a proof of sale document.

The tax rules that have been put into place by the IRS are there to protect not only the donor but the charities that receive the car. The modification of "The American Jobs Creation Act" (AJCA) states the amount of the deduction taxpayers can claim has to be proven. The price of the vehicle when sold by the non-profit organisation will be the amount used for the claim.The taxpayer must get a written acknowledgement from the organisation in order to claim the deduction.
Link: Car Donations AJCA