Donating A Vehicle
Donaing a vehicle is more important than ever. Keep on reading if you want to learn how you can make a difference by donating a vehicle today. If you are donating a vehicle to charity and wish to get the maximum benefit out of your donation, you need to follow these guidelines.
Donaing A Vehicle Basics
The condition of your car does not matter. Charities accept cars in almost any condition. What you do need is the title of your car which you will have to transfer to the charitable institute. Most charitable organizations will arrange for the free pick up of your vehicle.
Tax Deduction For Donating A Vehicle
Make sure that the charitable institute you are donating a vehicle to is classified as a 501(c)(3) organization by the Internal Revenue Services. If your charity is not recognized by the Internal Revenue Services, you won’t be able to get a tax deduction on the donated vehicle. You can find a comprehensive list of all qualified organizations at the IRS website.
Make sure you receive a receipt of your donation from the charitable institute. This receipt is very important if you wish to claim a tax deduction on your donation.
When you file your taxes, you will need an estimate of your car’s fair market value. Publication 561, determining the Value of Your Donated Property of the Internal Revenue services tells you how you can estimate the price of your vehicle. You can consult the Kelley’s Blue Book to get a correct estimate of your car’s worth. Do not forget to take into account the mileage and condition of your vehicle. If the vehicle you are donating is worth more than five thousand dollars, you will need a certified personnel to confirm the car’s worth.
If you wish to get a tax deduction, you need to itemize your taxes. You may need to consult an expert to make sure that the tax deduction you are getting from donating a vehicle is worthwhile.
Most charities choose to sell the vehicle and use the money to fund their cause. Some, however, may decide to use the vehicle in the course of their work or even give away free vehicles to poor people. Donating a vehicle is a great way to help unfortunate people and get a tax reprieve at the same time.
For further information regarding donating a vehicle and to see how you can make a difference today, please visit www.charitydispatch.com