Q:

Can you use the NADA used car book value when donating a car to charity?

A:

Quick Answer

There are situations where people donating cars can use the NADA used car book value to make the deduction on their taxes. If a car sells for less than $500 at a charity auction, the charity keeps it and uses it, or if they do work to the car before selling it, are all grounds for a tax payer to use the NADA guide to estimate the value.

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Can you use the NADA used car book value when donating a car to charity?
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Full Answer

The car's base value at the time of donation needs to be less than $5,000 in order to use the NADA guide book value . Any car that is valued over that amount must be handled through an independent appraisal and proper forms filled out for tax purposes.

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