Christine saw a television advertisement asking for donations of used vehicles to a charitable foundation and decided to donate her old car. Which of the following statements is correct?

Question

Quizplus · Accepted Answer

Option A is incorrect because the tax deduction for donating a vehicle is limited to the fair market value of the vehicle at the time of the donation, not equal to the amount she would have received if she sold the car directly.
Option B is incorrect because the tax deduction is limited to the fair market value of the vehicle, not its ultimate sale price.
Option D is incorrect because charitable organizations are required to provide written acknowledgment to donors who contribute $250 or more in goods or property. They are also required to provide a receipt to the donor describing the property being donated, whether the charity provided any goods or services in exchange for the donation, and a good-faith estimate of the value of the goods or services, if any, that were provided.
Therefore, Option C is correct because the donor can claim an estimated value for the auto if the charity uses it rather than selling it. However, the estimate must be based on the fair market value of the vehicle at the time of the donation.

Christine Saw a Television Advertisement Asking for Donations of Used