Tax Deductions and Credits Can I Deduct More Than One Car Donation on My Taxes? Read the Article Open Share Drawer Share this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Pinterest (Opens in new window)Click to print (Opens in new window) Written by TurboTaxBlogTeam Published Jun 17, 2011 - [Updated Aug 19, 2016] 2 min read The Internal Revenue Code does not limit the number of deductible charitable donations you can make in a single tax year. The same rules apply whether you donate one car or 500 cars. However, you must ensure that you satisfy all requirements for each separate vehicle donation. Initially, you must ensure you make the donation to a qualified nonprofit charity that promotes charitable, humanitarian, educational, scientific, literary or religious causes. Annual deduction limitations Although there is no limit on the number of cars you can donate, the IRS does limit the amount of your total charitable contribution deduction each year. Generally, you can deduct the value for all vehicles you donate if the total does not exceed 50 percent of your Adjusted Gross Income (AGI). If you have insufficient AGI to claim the full value of your donations in the current tax year, you can deduct the excess in any of the next five tax years. Valuing your car donations Unlike other property you donate to charity, the IRS imposes more restrictions on how you can assess the fair market value of a car. It requires you to reference a used-car price guide when assessing value. There are multiple guides you can use; however, you must reference one that considers the vehicle’s make, model, year, mileage and condition in its price assessment. In addition, taxpayers may only use the private-party sale prices rather than the price a used-car dealership charges for similar vehicles. Documenting your car donations For each vehicle that you value at more than $500, you must deduct the smaller of its fair market value or the gross proceeds the charity obtains in a subsequent sale. Charitable organizations that accept used vehicles must provide you with a Form 1098-C that reports the proceeds of the sale. When the organization sells the vehicle for $500 or less, the IRS limits your deduction to the smaller amount — either $500 or the fair market value of the vehicle on the date of contribution. Reporting your car donation deduction To claim the charitable contributions deduction for your cars, you must be eligible to itemize your deductions by incurring total deductible expenses during the year that exceed the standard deduction amount. If eligible, you must include all charitable donations on the Schedule A attachment to your personal income tax return. You must also complete an IRS Form 8283 if any single donation results in a deduction of $500 or more. The IRS imposes severe penalties on taxpayers who grossly overvalue their vehicle donations. If you report a car value that is 150 percent or more of its true value, you may incur a penalty of 20 percent calculated on the underpayment of tax that directly results from the overvaluation. The penalty increases to 40 percent for values that are 200 percent or more of actual value. The IRS provides a guide for determining the value of donated property. Previous Post Back Taxes Explained: What They Are & How To File Next Post How to Prepare for Disasters by Safeguarding Your Tax Info Written by TurboTaxBlogTeam More from TurboTaxBlogTeam One response to “Can I Deduct More Than One Car Donation on My Taxes?” Where do you enter a vehicle donation of less than $500? Reply Leave a ReplyCancel reply Browse Related Articles Taxes 101 Charity Tax Deductions (What Counts as a Contribution?) Tax Deductions and Credits Donating to Charity & Taxes: An Intro Guide Life Podcast: Giving and Getting Back (at Tax Time) Deductions and Credits Virtual Wedding? Deduct Your Wedding Dress on Your Taxe… Tax Deductions and Credits Holiday Donations and Tax Savings Tax Deductions and Credits 13 Tax-Deductible Donations That Aren’t Clothes Tax Deductions and Credits Holiday Gift Giving and Tax Deductions Tax Tips How to Donate Your Time, Property, and Cash Tax Reform I’m Donating to Charity This Winter, Will I Still Get… Tax Reform Can I Get a Tax Break for Supporting My Alma Mater̵…