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Tax Deduction Information
How is the tax deduction determined?
Claimed Value up to $500
If you are claiming up to $500 for your vehicle, the IRS will allow you to arrive at that figure on your own. Additionally, you will receive a donor acknowledgement from the American Lung Association.
Claimed Value Greater Than $500
If you are claiming over $500 for your vehicle, the IRS will allow you to claim the gross proceeds from the American Lung Association's sale of your vehicle. Gross proceeds exclude towing expenses and other fees.
The American Lung Association is a licensed car dealer and only resells cars on a wholesale basis. Wholesale prices are typically 15%-50% lower than retail prices.
Furthermore, the following factors may affect the sale price of your car…and consequently the amount you can claim as a deduction:
- Vehicle age
- Operability
- Impending Repairs
- Damage
- High Mileage
The American Lung Association will mail you a donor acknowledgement within 30 days of the sale stating the gross proceeds.
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