IRS Rule Changes May Benefit Ideal Auto Donors

All donations to Ideal Auto are fully tax deductible up to the value
of the donation. We provide donors with the information needed
determine the value of their donation. This value can be used as
an itemized deduction on your income taxes.

Recent IRS Tax changes mean that Ideal Auto can often provide
donors with a higher tax donation value on their vehicle than
other non-profit organizations that don’t use the vehicles or who
sell them through wholesale brokers. This is true for two reasons:
(1) as a licensed dealer, we are able to sell cars directly and
obtain a retail price, and (2) our JumpStart Program may use
donated cars to help low-income families.

What is your donation worth?

$500 Value—The IRS allows donors to claim up to $500 as a
deduction on their vehicle without the need for any additional
documentation. This generally applies to vehicles sold for salvage.

Actual Sale Price— If Ideal Auto sells your car to a buyer you will
be able to use this actual sales price as your tax deduction.
Because we have our own retail lot, we can often obtain a higher
actual sales price for our donors

Fair Market Value— If we are able to use your vehicle to help a low
income mom through our JumpStart Program you will be able to
receive the “Fair Market Value” as a donation value. This generally
provides the highest donation value. Examples of Fair Market
Value for various vehicles can be found on web-sites such as
Kelly Blue Book or NADA —look under the “Private Sale” category.

Here are the simple steps

When we talk with you or receive your vehicle, we will help you
estimate an initial deduction value—based on condition and
potential resale price.
Within 30 days of your donation, or the sale of your car, we will
send you documentation on how the vehicle was actually sold
and what the exact amount of your deduction will be. This
document is used with your tax return.