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$500 Rule
If the vehicle sells for $500 or less, you can claim up to $500 without proof of the sale price.
What it means
The IRS provides a safe harbor: if the documented sale proceeds are $500 or less, the donor may claim a deduction of up to $500 without Form 1098-C reporting the actual sale price. This rule was created because most vehicle deductions fall below $500 and the paperwork burden would deter donations. The charity still issues an acknowledgment letter.
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Ready to donate?
60-second form, free pickup nationwide, IRS Form 1098-C after sale.