How can you get a car donation that is tax deductible?
Car Donations are Tax Deductible
In the world of car donations, people often ask if their car donation is tax deductible. Of the many benefits of donating ones vehicle to charity, tax deduction or tax write offs are one of the most sought after. To be eligible for these benefits, first you need to pass and follow these specific instructions and requirements.
First requirement: Make sure that the charity that you are donating your car to is in good standing with the Internal Revenue Service. Do not fret, checking this out do not require your inordinate amounts of work. You just need to make a call to the IRS office or if you like check their website and look in there to see if the charity is there. If not then, you better find another one and make sure that the charity is IRS certified.
It is also a good Idea to have it detailed before donating. Car Donation Guide
Second requirement: Organize
You need to organize all the paperwork needed when you are filing your taxes. Having very organized files will save you time and effort in the long run. Also, by organizing your files, you can easily know what papers and documents you are missing.
Also, the paperwork that you need to submit varies depending on the amount of your car donation. Here is a small sample of how the car value determines the type of papers that you need to submit:
For car values that are two hundred and fifty dollars or less – you just need to fill up forms that describe the name of the charity as well as where the car charity can be found. You should also include the exact date of the donation as well as the place where you donated the car. And remember to include a very brief description of the vehicle that you donated.
For car values that are two hundred and fifty dollars up to five hundred dollars – you need to accomplish all the requirements that are stated above as well as go and get proof from the charity that you actually donated a car. This proof can be in the form of a written acknowledgement.
For car values that are five hundred dollars to five thousand dollars – you need to have all of the above requirements and then you need to fill up the Form 8283, Section A of the IRS.
For car values that are five thousand dollars and above – you need to accomplish all of the above requirements as well as the Form 8283, Section B plus a written appraisal.
These are just some of the requirements that you need when you try and avail of tax deductibles in your car donation. For more information, you may want to visit the IRS office or site for a more detailed list.
Donating your car to charity
And if you think that you will not receive any benefits from this transaction, you are mistaken. There are a lot of benefits that you can gain from donating your cars to charities. For one, there are the possible tax write offs that you can receive. The amount of the write off is dependent on the perceived amount of the car that you donated. However, the one thing that you should remember is that you should keep the receipt because the receipt serves as the proof of your donation.
So what are you waiting for? If you have a car that you are not using, why not give to donate it to charity and let it be used for a cause? It will definitely be for the good of all.
More by this Author
You have purchased your home, designed your interior, and now your do-it-yourself eyes are focused on the backyard. You are trying to decide exactly what you are going to need to give it just the right touch. You know...