Does Donating Your Vehicle Qualify You For A Tax Deduction?

When donating your car to a car donation service

, you will want to make sure that the charity chosen is a 501 (C) (3). This is a very important step. Many organizations can claim themselves to be non-profit. While this is true, if they are classified as a 501 (C) (4) organization, they are most likely not tax deductible. So make sure you check the status if you are concerned about making your donation tax deductible.

It is important to make sure that you accurately value your car. The IRS has become more concerned about how vehicles are valued. Audits have increased since there need to be more laws governing how vehicles are valued. If you use a car donation service, they will clarify all of the loopholes and what you need to be aware of. In 2005, it was mandated that cars worth over $500 dollars would no longer be able to be deducted at their fair market value. A deduction is now determines once a charity sends you a receipt.

Whichever car donation service you choose, you will be aided in filling out any needed paperwork. If your car is valued over $500, you must fill out an 8283 form. This will be provided for you through the donation service.

There are exceptions that allow people to use the fair market value of their car using the Kelly Blue Book or a NADA guide. This does not mean that you can use the highest value listed. You will want to use fair market value if a charity decides to use a car instead of sell it, the charity improves the car before it is sold, a vehicle is being sold at discount to a family in need, or if the vehicle is worth a value that is lower than $500. A donation service will make sure you get a receipt. This is very important since the IRS is watching vehicle donations very carefully.

Take your time when choosing a car donation service. Make sure not to give into television ads that look to good to be true. Make sure the service is reputable and high performing. This will ensure that you will make the most of your donation.

Car donation services really do help people take the guesswork out of what exactly needs to be done before, during, and after the donating process. It is a very easy and quick experience for those who donate their vehicles.

If you are a person who has donated a vehicle, spread the word. Vehicle donations make a huge impact locally and internationally. As a country, we could make a massive impact with vehicle donations, to ourselves and overseas. The hassle has been taken out of it with the emerging of car donation services. They take all the guesswork out of the process, allowing people to feel more comfortable about donating something as large as a vehicle. If you have considered it, contact a car donation service. They are more than happy to answer any questions that you may have about the process.

by: Anthony Corrano

POST COMMENT

4 Tips To File Motorbike Accident Claims Get Into Donating A Vehicle And Learn How You Are Helping Keeping Your Car Safe Innovative Xdsl Tester Covers A Broad Range Of Applications Getting Affordable Braces In Berkeley Tips to Find the Right Junk Car Removal Company Affordable And Elegant Wedding Necklace Set Three Ways to Fix Missing Drivers Affordable Oakland Orthodontics For You Keep Your PC Drivers Up-to-date How to Fix PC Linksys Drivers Medical Coding and Billing at Affordable Rates Choosing a Quality Helmet for your Motorbike