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If you donate your vehicle, the value of your deduction can vary greatly depending on what the charity does with it. You can deduct the vehicle’s fair market value (FMV) if the charity: -Uses the vehicle for a significant charitable purpose (such as delivering meals-on-wheels to the elderly) But in most other circumstances, if the charity sells the vehicle, your deduction is limited to the amount of the sales proceeds. You also must obtain proper substantiation from the charity, including a written acknowledgment that: -Certifies whether the charity sold the vehicle or retained it for use for a charitable purpose For more information on these and other rules that apply to vehicle donation deductions, please contact us.
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