Donating A Car to Charity

Donating a car to charity can be a great way to get a deduction on your taxes. The IRS has greatly simplified the deduction process by stating crystal clear laws and procedures. Now you don’t have to guess at the cost of your car, truck, boat, scooter or RV. Donating a car has never been easier.

Tax Deduction For Donating A Car to Charity

As of January 2005, you can get a tax deduction equal to the price your car was sold for by the charitable institute. This simplifies the procedure a great deal as you do not need to quote the fair market value of the car according to your estimate. It therefore eliminates the risk of you overstating the value of your car and getting into trouble with the IRS. As there is no guesswork involved, it avoids both risk and wastage of time.

While donating a car to charity, you can claim a tax deduction of:

The fair market value of your vehicle, if it is less than five hundred dollars or the sale value of the car, whichever is greater. To claim a tax deduction equal to the sale value of the car, you will need a written acknowledgement from the charity of the sale of the car and amount for which it was sold.

If your vehicle is worth more than five hundred dollars, you get a tax deduction equal to the amount your vehicle was sold for. You will need the receipt of the sale of your vehicle.

There are certain other precautions you need to take if you wish to get the maximum tax deduction while donating a car to charity. Make sure that the charitable institute you are donating to is a qualified organization; otherwise you may not be eligible to claim a tax deduction. Tax deductible donations can only be received by charities that are registered with the IRS. You can get a complete list of all such organization from the official website of the Internal Revenue Services. The IRS has also published A Donor’s Guide to Car Donations, which you can consult while donating a car to charity.

Donating a car to charity is one of the most generous donations you can make. There are so many people in need out there and this is your opportunity to make a difference! Look into donating a car to charity today!
For further information about donating a car to charity, please visit www.charitydispatch.com