Donating a vehicle is as simple as counting from 1 to 6 as described in steps 1-6 below.

Regardless if you are donating to help benefit others or simply to receive a tax deduction Living Proof Charities & Ministry uses the proceeds for charity and Ministry work.

Approximately 80% of the proceeds go toward paying for food, clothing, and providing temporary shelter to those in need. Our charity does stop there we also assist in utility bills when needed, medical bills, purchasing toys for kids, and of course even some vehicles are donated to families in dire need.

The other 20% goes towards administrative and advertising cost. At this time all of our staff works on a voluntary basis.

As a non-profit Living Proof Charities & Ministry is entirely dependent upon your donations, whether it be a car, van, or truck, piece of property or monetary. We thank you abundantly for your generosity.

You can always rely on Living Proof Charities & Ministry to put your donations back to work into society therefore fulfilling our motto: STORING UP TREASURES IN HEAVEN BY INVESTING IN LIVES ON EARTH TODAY.

Step 1: Choose a eligible organization (non-profit)

You can confirm our 501(c)(3) status by using the following steps or call the IRS at 877-829-5500.

A) Google search for IRS exempt organizations.

B) Select: exempt organization

C) Select: Are eligible to receive tax deductible charitable contributions

D) Select: EIN

E) Enter: Living Proof Charities & Ministry EIN:46-3866446

F) Enter: Search

Whether you decide to make a donation with our charity or another we feel confident that it is an act of Grace and a wise decision on your behalf.

Step 2: Itemized deductions

For a car donation to be eligible for a tax deduction, the donation must be made solely for charitable or public purposes and the donor must itemize deductions (such as medical expenses and charitable donations) on scheduled A of IRS FORM 1040. Those taking the standard deduction rather than itemizing will not receive a deduction for their donation. Generally, it is worth the effort to itemize if the total of the itemized deductions for that tax year is more than the standard deduction one is entitled to.

Step 3: Determine the amount of your deduction.

The exact amount of your deduction is dependent on what the charity does your vehicle and on the vehicle’s value.

Living Proof Charities & Ministry when possible will go the extra mile and seek to repair, clean, and restore select vehicles to good working condition therefore allowing you the donor a larger deduction.

Example:

Let’s say you have a vehicle that is worth approximately $5000.00 but it needs repairs etc. of approximately $1000.00.

Living Proof Charities & Ministry works closely with auto and body repair shops that will make the necessary repairs therefore restoring the vehicle to good working condition.

– If you sell it to a auto salvage yard at the U.S. average of $200.00 dollars per car you will only be able to deduct a minimum of up to $500.00. Also you will lose the option of Living Proof Charities & Ministry repairing the vehicle therefore increasing the vehicle value substantially. After repairs your donated vehicle is now worth approximately $5000.00 instead of $200.00. We deduct approximately $1000.00 of repair cost etc. that leaves the donor an approximate $4,000.00 deduction.

– If Living Proof Charities & Ministries uses the donated vehicle for its own purposes such as delivering food, clothes to the needy or we give it to a needy individual or family your tax deduction will be the fair market value of the vehicle.

– If Living Proof Charities & Ministries sells the donated vehicle for junk “primarily totaled or a unrepairable” vehicles or at an auto auction for less than $500.00 your tax deduction would be the fair market value up to $500.00 as determined by you the donor.

– If Living Proof Charities & Ministries sells the vehicle for more than $500.00 your tax deduction will be the final sale price of the vehicle.

– If Living Proof Charities & Ministries repairs and sells your vehicle your tax deduction will be the final sale price minus repairs and applicable fees such as towing and detailing charges.

DEFINITION OF FAIR MARKET VALUE

Fair market value is defined as “the price at which the property would change hands between a willing buyer and a willing seller, neither being compelled to buy or sell, and both having reasonable knowledge of all the necessary facts.” in other words, the price you could reasonably expect to get for the vehicle on the open market. This is not necessarily identical to the “Blue Book” value of the car, as factors such as engine or body trouble or excessive wear could decrease the vehicle’s value and significant improvements might increase the value.

Step 4: Gathering necessary documentation.

The documentation you’ll need to claim your deduction is dependent on the amount of the deduction.

<$500.00

For a deduction of $500.00 or less, the IRS requires:

– the name of the charity

– a description of the donated vehicle

– a statement if goods & services were received, & their value.

QUICK TIP: This information is usually found on the receipt issued by the charity. If you donated to Living Proof Charities & Ministry your official receipt is all the documentation you will need in this case.

$500-$5000

For a deduction of more than $500 and less than $5000 the IRS requires:

– the name of the charity

– a description of the donated vehicle

– a statement if goods & services were received, & their value.

– Copy B of IRS FORM1098-C OR a legal substitute

– If you are e-filing, IRS FORM 8453

QUICK TIP: The official receipt issued by Living Proof Charities & Ministries is a legal substitute for IRS FORM1098-C used to input all necessary information asked for by tax software from the 1098-C.

>$5000.00

For a deduction of more than $5000, the IRS requires:

– IRS FORM 8283

– Form 1098-C OR a legal substitute (such as the receipt from our charity)

– A written appraisal of the vehicle’s value. The appraisal must be from a qualified appraiser and must be completed no more than 60 days before the donation. The cost of the appraisal cannot be deducted as a charitable expense, it can be itemized in miscellaneous expenses. If you are claiming the fair market value of a vehicle that will be used by the charity for its own purposes or the charity will be making material improvements to the vehicle, the IRS also requires written acknowledgment from the charity describing how the vehicle will be used or improved and certifying that it will not be sold before said use or Improvement. The IRS Guide to Vehicle Donations for Donors explains this in more detail.

Step 5: File tax return!

The tax deduction can be claimed in the year that the donation was given. Don’t forget to include all the necessary documentation, as outlined above, with your federal income tax return. Whether your car donation qualifies for a deduction on your state income tax return varies on a state by state basis. Check with your local state tax department.

Disclaimer: This guide is intended to be used as a general source of helpful information but not as a replacement for specific tax guidance or advice. Living Proof Charities & Ministries is not in the business of providing accounting, or legal advice. For that, we recommend you seek the services of a competent professional.

Step 6: Keep your records.

The IRS requires you to retain the following information for your records:

1. Name and address of charity

2. Date of donation

3. Place where you donated your vehicle

4. Description of vehicle (year, make, model, and mileage)

5. Written acknowledgment or legal receipt from charity (when sold for more than $500)

The receipt you’ll receive from Living Proof Charities & Ministries contains all the above information and is all the documents you’ll need for your records and to use when filing your federal income tax return.

Donate your vehicle now by completing the online form above or by calling 863-934-0386 during normal business hours.