Donating Your Car to Charity – What You Need to Know

Donating Your Car to Charity

The holiday season brings out the spirit of giving in all of us. It is a moment of capital, not only to give their loved ones, but also to give to their favorite charities and causes. You can donate their time, their professional knowledge, write a check, or you can donate valuables, like a car, that charity can sell and apply the benefits of their programs. If you resolve to donate your car to charity, plus the warm and fuzzy feeling that comes from giving to others, you can potentially get a tax deduction out of it too. TrueCar.com offers some points below:

Choose the charity you would like to donate to:

Most people have charities that support causes that are near and dear to his heart. Identify those charities and ensure that they are trusted - by searching Charity Navigator, which was recently named by Kiplinger's Personal Finance as the "Best Charity Site Review;" and you can search page review of the charity of the Better Business Bureau.

Shout out the charity and make sure they accept car donations:

There was a time when you have identified would like to donate to charity, give them a call to make sure accept car donations. If they behave, this is also a good time to coordinate the collection / delivery. If you want to maximize the benefits of charity vehicle, then throwing the vehicle to charity it is the best option. If you do not accept donations of cars, then find another reputable charity that will.

Find out if you qualify for a tax discount:

Not all charities are eligible to receive tax deductible donations. To receive a tax deduction for donating your car, you donate to charity must be approved by the IRS as a 501 (c) (3) organization. To check the status of your charity, seek IRS Publication 78. Below is a quick reference provided by the IRS shown.The maximum amount of money you are able to deduct on your tax return is what the IRS refers to as "the fair market value of your car", ie what a willing buyer would pay car and what a seller would accept for the car. Www.clearbook.com to find out how much your used car is worth, based on an analysis of millions of used car ads and sales transactions. For more information about how to determine the fair market value of your car, refer to IRS Publication 561.

File the proper IRS forms to claim your discount:

Keep in mind that you must itemize deductions on Schedule A of Form 1040. Note that there are certain restrictions on charitable deductions, which are detailed in IRS Publication 526. If you are claiming more than $ 500 deduction , you need to fill out Section a of IRS form 8283. If you are claiming synthesis is more than $ 5,000, you need to get a written explanation of your car from a qualified appraiser evaluation, and assessment must be performed no more than 60 days prior to donate the car and before the due date (including extensions) of your return.  

Thus, just as complete Section B of Form 8283 with the signature of an authorized statement attached to its official charity. In this case, if the charity sells or gives the car within two years from the date donate, charity will also have to file Form 8282 with the IRS identify the donor, the amount received from the sale or disposition of the car, and must provide a copy.