Donate auto to charity to get rid of your used car or truck in a safe and hassle free manner. If you donate auto to charity, you can get a tax reprieve equal to its fair market value. There are some things you need to know if you are to donate auto to charity. Some regulations may vary from state to state; however, some process are also similar as well.
Find the right charity to donate auto:
Make sure that the organization you are donating your vehicle to is registered with the Internal Revenue Services as a non-profit organization. Only registered organizations are qualified to receive tax deductible donations. Also you should find a charity that does not charge a removal fee.
Find the Fair Market Value of the Car:
To determine the fair market value of your vehicle, use the Kelley Blue Book or IRS Publications 526 and 561. If your vehicle is worth more than five thousand dollars, get it appraised by someone certified.
Now it is time to donate auto. The charity will either keep the car and use it or sell the car and use the funds for charitable purposes.
If the charity decides to use the car, you will get a tax deduction equal to the fair market value of the car.
If the charity sells the car in order to generate funds, you are entitled to a tax deduction equal to the price for which your vehicle is sold. You should receive a receipt from the charitable institute that clearly mentions the name of the charity, tax ID number, date on which the vehicle was donated, donor’s name, and details of the car such as its year, make and model. With this receipt, you can claim up to five hundred dollars. However if the value of your car is greater than five hundred dollars, the charity will ask you to fill out a W9 form. You will then receive a copy of the 1098 form which shows the sale value of your vehicle.
Make sure you follow all the state regulations regarding what to do with the titles and the plates. You should preserve your IRS form 8283 as you will need it while filing your income tax returns.
If you donate auto to charity, make sure to follow all the required procedures.
For more information on how to donate auto to charity, please visit www.charitydispatch.com