Can You Use the NADA Used Car Book Value When Donating a Car to Charity?

Can You Use the NADA Used Car Book Value When Donating a Car to Charity?

Can You Use the NADA Used Car Book Value When Donating a Car to Charity?

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.

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.