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donate car to charity deduction
Donation of car to a charitable organisation is noble cause. It is help to organisation which depends on society for their day to day expensenses. This charitable work gives you inner satisfaction and peace which you won’t get from anything.
Other than inner peace, the car donation to charities gives you tax deduction under USA taxation laws. There are some points which kept in mind for donating a car to charities.
Some points to remember while donating car to charity
1.First and foremost thing is that make sure that car or boat is working properly and its parts are in good condition so that charitable organisation don’t have to run here and there for repair in case of some failure. If later something wrong comes out, it will bring bad name for you.
2. Search for good charitable organisation and avoid the middlemen-While driving, most of the time you might have saw the advertisement of companies in TV , newspaper or boards saying that they will search good non-profit organisation for you and look after all the process of donating a car to charitable organisation. So don’t fall prey to their sweet word. In reality they keep more than 50% donation and leave very little for charitable organisation. Do your own research of charitable organisation and approach them personally.
3. Make sure that the organisation that you are giving charity comes under 501(c)(3).Otherwise if you give donation to some other non-profit organisation that doesn’t come under this section ,you will lose your tax deduction.
4. If your car or boat price is more than $500 then fill 8283 form of IRS. Other than that also take resale price of your car from the market in case charity sales the boat or car in the future. When you are applying for tax deduction, you have to mention that resale price to be eligible for tax deduction. Don’t forget to take receipt of car sale from charity, as this will attached as proof while applying for tax deduction.
5. If the price of vehicle or boat is more than $5000, and then you will require permission from the concerned state department for donating it.
6. Other point that should be kept in mind that if its price is less than $500 or charitable trust use it for their day to day work then you can mention the fair market price for your car.
7. When you donate your vehicle to charitable trust, leave it at the place of charitable organisation. This gesture shows you care for that organisation and want that this vehicle help them in social work.
8. At last, you should also transfer the title of car or boat and make it in the name of charitable trust. If charity sells the vehicle then left it blank.