Top Tax Deduction!
Automobile For Donation
An automobile for donation can make an immeasurable difference in the life of somebody in need. Thee are a number of charities out there who can facilitate this process. Donating a vehicle is easy; however, there are certain things you need to ensure if you have an automobile for donation. Firstly, do not just donate to any charitable institute. If you wish to receive tax deduction on your donation, you need to find the right charity and make sure that you follow the Internal Revenue system regulations:
The Internal Revenue system has issued certain guidelines that you can follow to avoid potential pitfalls while donation:
Donate to a qualified organization: While donating your car to charity, make sure that the charity you have selected is an eligible organization; otherwise your donation will not be tax deductible. You can check the Internal Revenue System website, which has a comprehensive list of all charitable organizations that are qualified to receive tax deductible donations, whether the charity you are donating to is recognized or not.
Fair Market Value of Automobile For Donation
Determine the fair market value: Before putting up your automobile for donation, you must calculate its the fair market value. Fair market value is the amount the vehicle would fetch if sold in the market, at the time of donation. While deducing the fair market value, you should be very careful as the IRS will not consider your donation for tax deduction, if you quote a higher price. Factors such as mileage, condition and date of the vehicle should also be taken into consideration.
Record Tax Deduction on Automobile For Donation
Record the Charitable Contribution Deduction: If you give your automobile for donation, you must document the vehicle donation and its fair market value. Recordkeeping requirements vary according to the fair market value of the vehicle and state regulations. Make sure you research extensively and complete all formalities.
Contact Internal Revenue Officials whenever in doubt: If you have any doubts while giving away your vehicle for donation, you can contact Internal Revenue Service at
1-800-829-1040.You can find Internal Revenue Service forms and publications at the Internal Revenue Service official website.
If you have an automobile for donation, make sure you follow these steps to ensure a safe and beneficial donation without any unnecessary hassles.
If you want to know more about precautions to be followed while giving your automobile for donation, please visit www.charitydispatch.com. It could be the best decision of your life and somebody else’s.