Vehicle Donation Guidelines to Get a Tax Break
Donate a car to a charity is an easy go task. Choose your favorite charity, call us up and schedule a car donation pick up, that’s it. The great thing about donate a car program is not only the tax deduction, but the great help that your car donation can make impacting the life of many in difficulties. You can make any car donation including, trucks, Recreational Vehicles, boats, air planes or other vehicles.
The very first thing to consider before making a car donation is choosing the charity of your choice, you can donate a car to any church, school, medical aid, medical research, any nonprofit organization. Donate a car here; we make material improvements to your car donation (when it is financially convenient for the charity) allowing you to get the highest tax deduction possible by law.
Before 2005, you could give away a clunker to a charity and it was easy to determine the fair market value. People referred to an auto valuation services, such as the Kelley Blue Book, to get an idea of the donated car's value, give it to your favorite nonprofit and then drive off with a tax break equal to that valuation amount. No more.
Because some taxpayers got greedy, claiming much more than their old autos were worth; lawmakers tightened the rules on how much you can write off for a vehicle donation. Now the precise tax break depends on the donor's claimed value of the gift and how the charity uses the vehicle.
"This puts taxpayers in the unusual situation of not knowing the size of their deduction when they make the donation," says Bob D. Scharin, senior tax analyst from the Tax & Accounting business of Thomson Reuters.
$500 limit
In most cases, a taxpayer must take into account a $500 threshold on vehicular gifts. This value amount applies to autos, boats and even airplanes. If at the time of sale the vehicle exceeds the$500.00 value, then the claiming deduction will be the amount of the sale.
We will provide you with a substantiation of the Internal Revenue Service-allowed donation amount within 30 days of when you turn your car over to the charity or, if the group sells the auto, within 30 days of the vehicle's sale. The money from the sale of your car donation will be used by the charity of your choice to develop programs for the community. For more details click here
The very first thing to consider before making a car donation is choosing the charity of your choice, you can donate a car to any church, school, medical aid, medical research, any nonprofit organization. Donate a car here; we make material improvements to your car donation (when it is financially convenient for the charity) allowing you to get the highest tax deduction possible by law.
Before 2005, you could give away a clunker to a charity and it was easy to determine the fair market value. People referred to an auto valuation services, such as the Kelley Blue Book, to get an idea of the donated car's value, give it to your favorite nonprofit and then drive off with a tax break equal to that valuation amount. No more.
Because some taxpayers got greedy, claiming much more than their old autos were worth; lawmakers tightened the rules on how much you can write off for a vehicle donation. Now the precise tax break depends on the donor's claimed value of the gift and how the charity uses the vehicle.
"This puts taxpayers in the unusual situation of not knowing the size of their deduction when they make the donation," says Bob D. Scharin, senior tax analyst from the Tax & Accounting business of Thomson Reuters.
$500 limit
In most cases, a taxpayer must take into account a $500 threshold on vehicular gifts. This value amount applies to autos, boats and even airplanes. If at the time of sale the vehicle exceeds the$500.00 value, then the claiming deduction will be the amount of the sale.
We will provide you with a substantiation of the Internal Revenue Service-allowed donation amount within 30 days of when you turn your car over to the charity or, if the group sells the auto, within 30 days of the vehicle's sale. The money from the sale of your car donation will be used by the charity of your choice to develop programs for the community. For more details click here