Donating your car or vehicle to charity can be a great way to get a 2022 federal tax deduction, and Rawhide Youth Services makes it free and easy. Start by simply filling out this online form or calling 1-800-RAWHIDE. Our friendly donor service representatives and vehicle technicians are here to ensure you get more for your donation after the sale. The information below is intended to provide general information only and is not intended to be tax advice. Tax issues are individual to each donor and change year to year. Please check with your accountants, advisors, and tax preparers concerning all deductions, tax preparation, and tax advice issues. Are Vehicle Donations Tax-Deductible in 2022? Vehicle deductions are tax-deductible, and Rawhide makes it easy for you to get the maximum allowable tax deduction for your vehicle! After you donate a vehicle to Rawhide, we send it to an inspection site. Then our auto technicians will make minor improvements to your car to get a better sale price at auction. How Much Can You Claim? Vehicle donors can choose one of two options allowed by the IRS for a tax deduction: If the vehicle sells for $500 or less, or less than fair market value, you can claim the fair market value of your vehicle, up to $500. If the vehicle sells for more than $500, generally, you can claim the full selling price. If your vehicle sells for more than $500, we’ll mail you a statement that includes the selling price. You’ll include that when you file your taxes. For additional information, see the IRS publication, A Donor’s Guide to Car Donations, which explains how they determine the value of your donated vehicle. As always, we help people donate their vehicles daily, and we would be happy to help you do the same. Feel free to call us at 1-800-RAWHIDE with any questions you might have, and one of our donor service representatives will help you. What Paperwork Will You Need to Complete? If your vehicle sells for $500 or less, you won’t (in most cases) need to fill out additional paperwork to claim the fair market value, up to $500. You’ll need to complete either a 1098-C form or an 8283 form if your vehicle sells for more than $500. If your vehicle sells for more than $5,000, you’ll also need to include an appraisal statement with your taxes in order to claim the full selling price as a deduction. Frequently Asked Vehicle Donation Tax Deduction Questions Q: Why does Rawhide sell cars? A: We sell donated cars to raise funds for our youth programs. Over 83% of our car sale proceeds directly fund our programs. Q: Where does Rawhide sell cars? A: We sell donated cars to licensed dealers at wholesale dealer-only auctions. In addition, we sell collectible cars to the general public through our eBay store. Q: Can you pick up the car at my home? A: YES! We can pick up vehicle donations within Wisconsin. Please call 1-800-RAWHIDE to learn more. Q: How quickly can you pick up my car? A: After you provide us with your vehicle identification number (VIN), we’ll aim to pick up your vehicle within 3-5 business days. Q: My car isn’t running. Will you still accept my donation? A: YES! As long as your car has four working tires, we’re interested! Q: Can I donate my car without a title? A: No. Rawhide only accepts vehicles with a title from the last registered owner. If you’re not the previous registered owner and want to donate your vehicle, you’ll need to register as the new owner with the Wisconsin Department of Motor Vehicles. If you have lost your title, you may obtain a duplicate from the DMV. Q: Do you accept vehicle donations from outside of Wisconsin? A: YES! We accept donations from other states (vehicle pickup is available only in Wisconsin, however). Please call 1-800-RAWHIDE to ask where you can drop off your vehicle. Q: Can you estimate the selling price for my donated car? A: YES! Rawhide can provide an estimate based on the price of similar vehicles that have sold at auction. However, this is not a guaranteed amount. Q: Do I need to submit a 1098-C form? A: IRS Form 1098-C requires specific information for car, boat, and airplane donations. This form is not required if your car sells for $500 or less. If your car sells for more than $500, Rawhide will provide you with a completed copy of the 1098-C form. Q: Will I receive a receipt that shows what my car sold for at auction? A: YES! Rawhide will send you a receipt (or a 1098-C form if your car sells for over $500). Q: If charities offer vacation packages in exchange for vehicle donations, does that affect donor tax deductions? A: YES! If a charity offers a vacation package in exchange for a car or vehicle donation, the value of the vacation package must be subtracted from the value of the car donation. For example: If your vehicle sells for $1,000 at auction and the vacation package you receive has a fair market value of $400, you can deduct only $600 for your car donation. Q: Do some charities provide better tax deductions? A: Yes and no. The IRS sets deduction rules, so while charities can’t change allowable deductions, they can help donors claim a larger deduction by selling the donated car for the best possible price. Rawhide is one of the few car donation charities that inspects and makes minor car improvements before selling them at auction. That means our donors get the best vehicle price, and Rawhide gets more funds for its youth programs. How Rawhide is Different from Other Car Donation Charities Convenience for Donors We provide free vehicle pickup and over 170 drop-off locations. Maximizing Donations Unlike other car donation charities, Rawhide inspects and makes minor improvements to vehicles before selling them. That means: Buyers get more reliable vehicles. Our donors get the best possible tax deduction. We earn more proceeds to help youth and families in need. Donation Funds Stay in Wisconsin For over 50 years, we’ve served youth and their families across Wisconsin. From Eagle River to Kenosha to Green Bay and La Crosse, we’re committed to helping at-risk youth live better lives. Our Stewardship Our donors and the people we serve trust us to be responsible stewards of their gifts. That’s why we don’t use a “middle man” — we handle all donations ourselves, ensuring that third parties don’t take a portion of proceeds from vehicle sales. Share: Please enable JavaScript to view the comments powered by Disqus.