What not everyone knows about donating vehicles is that you don’t get to deduct the Kelly Blue Book value of the car that you donated. What you get to deduct is the amount that your car really sells for at auction. That’s fair enough, unless your car gets stolen from the lot before auction. Then what happens?
When this happened to a California man who donated his 15-year-old car to the Breast Cancer Fund, no one could advise him on what to do. The charity’s advice? Check with a tax advisor. He turned to CBS Sacramento consumer reporter Kurtis Ming, who checked into the situation, but couldn’t help, either.
The good news? As long as the man kept his receipt, he can get at least a $500 deduction. Not much if he takes the standard deduction, but better than acting like the car had vanished.