Fair Market Value.

The Fair Market Value (FMV) of a car is defined by the IRS as "the price at which a car would exchange hands between a willing buyer and a willing seller, neither having to buy or sell, and both having reasonable knowledge of all the relevant facts." When donating a car to a charitable organization, it is up to you, not the organization, to determine the car's FMV. This is the amount that may then be deducted on your tax returns. Blue books, newspaper ads, and internet listings are useful benchmarks for determining FMVs. However, for donations valued over $5000, the IRS requires a written appraisal from a qualified appraiser be included with your deduction claim.

Selected Fair Market Value links:

Related terms: Car Donation,

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