Car Donation
Is your old car broken or not worth selling? Think you have no option but to let it rust in your driveway? Think again! Car donation is a great way to re-coup value from an old vehicle in the form of tax deductions and help out a charity in the process! donate their car to charity for tax purposes.
What Is Car Donation :
Car donation is a chance for individuals and companies to give their old unwanted vehicles to charity in exchange for tax deductions. In some cases individuals can save hundreds or even thousands on their taxes. Individual car owners have saved literally hundreds of millions of dollars every year since the tax deductions were initially introduced. This method of donations has also benefited charities immensely since it began spreading in popularity. In 2000 alone, American tax-payers saved themselves over $650 million in taxes.
Car donation is a chance for individuals and companies to give their old unwanted vehicles to charity in exchange for tax deductions. In some cases individuals can save hundreds or even thousands on their taxes. Individual car owners have saved literally hundreds of millions of dollars every year since the tax deductions were initially introduced. This method of donations has also benefited charities immensely since it began spreading in popularity. In 2000 alone, American tax-payers saved themselves over $650 million in taxes.
Can I Donate My Car?
Anyone can donate their car to charity for tax purposes. There are certain requirements that are necessary, and a couple things you have to be sure of :
- Find a Reputable Organization : To receive a tax deduction your car must be donated to an eligible and certified organization. Taxpayers can call the IRS to confirm an organiztion at 1-877-829-5500, or they can find an updated yearly list at their local library.
- Itemize Your Deductions : To receive the deduction you most itemize all your tax deductions. When deciding whether to itemize your deductions or not, take into account the standard deduction (defined yearly by the IRS).
- Fair Market Value : Figure out the fair market value of the car. The IRS will provide step by step instructions on how to do so in IRS Publication 526 and IRS Publication 561.
- Documentation : To complete the donation the donating party must properly document. Record keeping to IRS standards is very specific so be sure to check IRS Publication 526 to be sure you’re in accordance with their rules.
Is It For You? If you’re trying to get rid of an old car and are having trouble selling it or simply want to help out a local charity, it definitely is! U.S. charities have benefited immensely from this tax program. Just be sure to go through the proper channels, complete the proper IRS paperwork, and remember, if you have any questions on the process always call the IRS to clarify any points!