Home / Total Loss Articles / Services / Charity Appraisals

Charity Appraisals

Donating a vehicle that’s worth more than $5,000. Get a qualified IRS appraisal today.

 

By donating a vehicle to a charity, individuals can deduct the car’s fair market value from their taxable income. If the claimed deduction for a vehicle is more than $5,000, the donor must submit an IRS-qualified car appraisal issued by a licensed professional. In addition, donors must attach an appraisal summary (Section B of Form 8283) to their tax return. The appraisal must be made no more than 60 days before the vehicle is to be donated. Vehicles that are financed or that have liens cannot be donated.

Car Appraisals & Claims LLC will provide donors with a comprehensive vehicle appraisal report that includes:

  • Description and physical condition of the property
  • Date of contribution
  • Terms of the appraisal agreement
  • Name and taxpayer identification number of the appraiser, as well as a signed IRS Form 8283
  • Qualifications of the appraiser
  • A statement that the appraisal was prepared for income tax purposes
  • Date of appraisal
  • The appraised FMV (Fair Market Value) of the vehicle
  • The method of valuation used to determine FMV
  • The specific basis of the appraisal, including comparable vehicles.

Before donating a vehicle, donors should always research the chosen charity with the Better Business Bureau and confirm that the charity is properly registered with the IRS.

Donors must also be careful when selecting an appraiser. The IRS describes a qualified appraiser as someone who is paid regularly to prepare appraisals and who demonstrates competency in valuating the property being appraised — essentially a full-time professional that conducts appraisals regularly and who holds a professional license, a valid business license, as well as a tax identification number.

Appraisals must comply with IRS publication 561; reports need to be USPAP compliant, containing the appraiser’s signature and certification. Appraisers are also required to sign IRS form 8283 and provide their tax identification numbers to the IRS. Appraisal reports must follow the comparable sale method that compares the donated property with several similar properties that have been sold. Fair Market Value cannot be determined by simply looking up the NADA value or Kelly Blue Book nor can it exceed the price of a similarly listed private party sale. In addition, FMV must be adjusted to account for the physical condition of the donated vehicle.

The IRS does not require a physical inspection, so as long as the appraiser receives enough information to conduct a proper valuation, a sight-unseen appraisal is acceptable. Some appraisers offer on-site appraisals, which are typically more expensive.

Subscribe to Our Newsletter

Access, first-hand, our main posts directly in your email.

Appraiser Blog

Related Posts

A winding highway in a picturesque landscape with vibrant red rock formations under a clear blue sky, symbolizing high-quality road infrastructure.

Top States with the Smoothest Roads in America

Ever hit a pothole so deep you felt it in your soul? If you’re nodding along, you’re not alone. Complaining about road conditions is a national pastime that transcends state lines, yet some Americans have less to grumble about than others. While it’s a common belief that our own state’s

Read More >
A sleek electric sedan speeds through a futuristic cityscape at dusk, reflecting innovation and sustainability in electric vehicle technology, with modern buildings and integrated solar panels highlighting a clean, energy-efficient future.

Why Lucid Motors is the EV Company to Watch in 2024

In the electrifying race towards a greener future, Lucid Motors has not only accelerated its pace but also surpassed expectations, marking a significant milestone in the electric vehicle (EV) industry. Amidst a landscape where traditional and new-age automakers grapple with fluctuating demand and economic headwinds, Lucid’s strategic maneuvers have propelled

Read More >
A car technician's hands in gloves using a screwdriver on a car door lock at sunset, symbolizing repair and maintenance.

Why Your Car Door Lock is Acting Up and How to Fix It

Have you ever approached your car, ready to head out, only to find that your car door won’t lock or unlock with the press of a button, the turn of a key, or even a command from your smartphone app? In an era where technology has seamlessly integrated into every

Read More >