7. Is an Appraisal Necessary When Donating a Vehicle?

The need for an appraisal when donating a vehicle would depend upon the circumstances. Under current IRS guidelines (at the time of this writing), when a private party makes a donation of a vehicle valued at $5,000.00 or more, there are several requirements including but not limited to:

  • Obtaining a written appraisal by a qualified appraiser
  • The appraisal be prepared no less than 60 days before the contribution
  • The maximum deduction allowed is the vehicle’s “Fair Market Value”
  • The charity is a qualified organization
  • Your deduction cannot exceed 50% of your gross Income
  • Note that “Fair Market Value” may be considerably less than “Book Value”

While not mandatory, an appraisal of a donated vehicle valued at less than $5,000.00 is considered prudent.  For additional information in this regard you may wish to visit: http://www.irs.gov/pub/irs-tege/pub4303.pdf

NOTE: Vehicle Value Experts does not provide legal or financial advice and suggest that should such counsel be desired that the IRS and/or a qualified professional familiar with such matters be contacted. For further clarification regarding the use of this site please visit our “TERMS AND CONDITIONS”.

Category: Appraisals FAQ

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