Car Donation - What You Must Know About Choosing The Best Charity Car Donation Program
Posted by Twinpeak in TaxesToday in the US it’s possible to donate a vehicle (usually a car, but it can be a truck, boat or any other type of transportation) to certain charities, and in return be able to claim a tax deduction on your income tax return. If the car donation is accepted, the charity takes care of any towing expenses and provides you with the necessary documents for tax purposes. If a charity does not welcome your questions and provide clear answers about where the proceeds from donations will go you might think about making your car donation to another charity.
If you don’t plan to deduct the vehicle donation on your tax return, no further action is necessary. By donating a car it can eliminate spending money on unnecessary repairs, advertising fees and the problems or liabilities associated whenever you sell a vehicle. Some charities have the ability to repair or perform maintenance and prepare a donated vehicle for sale.
Best of all, by not selling the car yourself, you don’t have to worry about total strangers calling you to get information and find out where you live, or coming to your house to see the car, truck or other vehicle. Make sure you have the title to the vehicle and keep it handy. In some cases charitable car donors can still claim the fair market value for their vehicle.
For states that require smog certificates or safety inspection certificates, you can donate your vehicle without these certificates. You used to be able to deduct the fair market value of the vehicle at the time of the deduction - but not any more. Some car donors, who are in need of a new vehicle themselves, even buy recently donated and repaired vehicles.
You may also donate your car online to a number of individual charities or car donation programs. Also, if your car is still running, consider dropping it off with the charity yourself to save the organization from paying for any towing costs. And when you donate a car, besides the tax deduction, you know you’ll get it off your property within a couple of days, clearing out usually much needed garage, driveway or yard space.
As the donor you benefit from the donation by receiving a tax receipt for the highest possible value for the vehicle. Also your vehicle must have all four of its tires inflated to be accepted and must not have any major parts missing.
If your automobile, truck, boat, motorcycle, RV or even airplane is no longer of use to you, it can still go a long way toward supporting a charity of your choice. Repairable vehicles are accepted provided it is repairable for less than what it could sell for. The charities can donate the vehicle to the eventual recipients directly or they’re sold and the money is given away as of the charity function.
One of the exceptions to the new IRS regulations allows donors to still deduct the fair market value of their vehicle, provided that the charity materially improves the car, truck or other vehicle. Normally in wear and tear, minor repairs and breakdowns, an average vehicle owner might spend more than $3000 per year on his/her vehicle. And some charity car donations may not qualify for a tax exemption because of the vehicle condition.
There are a few exceptions in the new tax law regarding the fair market value section, for example, you may base your deduction on the vehicle’s fair market value if the charity sells it to a needy individual at a discounted price or if the charity uses the car as part of its mission rather than selling it to another. If you have an unused vehicle just sitting around, you never know when a storm might cause damage to it or your vehicle might get vandalized, or if parked on the street get involved in an accident. You can receive a car donation tax deduction up to the limits allowed by the IRS.
If you think that donating an old car is a good way to ease your taxes then why not check into it today. Major charity car donation programs include: the Kidney Foundation Car Donation Program and the Goodwill Industries Car Donation Program. Goodwill has used car lots in various cities. You can get a nice tax break and help your community at the same time.
For more info on choosing the best charity car donation, car donation program, used car donation or charitable car donation online and offline go to http://www.Car-Donation-Info.com for charity and tax deduction tips, help, facts, reviews, including information on all types of car donation
