Car Donation and Tax Deduction

Whenever that time comes when you need to get rid of your old car, its good to know that making a car donation is a great choice for many reasons. Whether your getting a new car and need to remove you old car or just don't need your old car anymore, your car donation can be beneficial to you by being written off when you do your taxes. Get a tax break and possibly a bigger refund check when you make your car donation.

Not only that, you also get a great feeling knowing that your car donation will go towards a great charity. Either your old car can be donated directly to a charity for good use or your old car can sold by a car donation service and the proceeds will go to a helpful charity.

All you have to do is find a car donation service, have them pick up your old car for free even if it is not running, then they will fix up your car for free (or sell the parts for charity), and either donate the car directly to a charity or sell your car or car parts with the proceeds going towards a great charity. You can even choose the charity you want in some cases.

Just have your car title ready at the pick up and the car donation service will take care of the rest. It usually takes less than 24 hours for the car pick up. Speak to the car donation service about choosing charities and keep you receipt for your records and tax filing time.

With great tax benefits and a great feeling that you are doing something good, making a car donation is a great option. Just remember, when you want to remove your old car, a car donation is a great choice to get that done.

Eric Smith is a blogger, marketer, merchant and web site owner. Find out more about this topic here: http://www.whatisgoingonblog.com/2008/02/here-is-good-idea-car-donation.html

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Why are car donations a good idea? As a car owner, there comes a point when you realize that your automobile is on its last legs. Assuming you have the next automobile in your sights and/or possession, what can you do with your clunker? If it's a heap and needs extensive work, there's no point in giving your wallet a beating. Why pay a thousand dollars in repairs if the car is only worth a few hundred? Who is to say it won't break down again shortly thereafter, costing you even more? If the motor runs and the wheels aren't rolling off, a lucky younger relative in need of a handout could take it as a present. Or you could spend money advertising it for sale, yet receive a pittance. Making a car donation is a smart option.

Whether a convertible, a bus, a pickup or a junker, a non-profit charity will gladly take your vehicle. It does not even have to be a running vehicle to donate it. It is a tax write off and you're able to claim more for making a contribution than what you would get selling it. The assistance you give to the charity of your choice by making a car donation gives a feeling of satisfaction.

Making a gift of a car donation is simple. The hardest part is figuring out which deserving charity gets your help, and that's not a bad task at all. You can choose from large national organization that you are familiar with such as the United Way, American Lung Association, The Red Cross, The Boy Scouts or the Salvation Army. Or you can choose something local that will aid your community exclusively. Church groups, schools and local hospitals are all places to check.

Most places will come to you for a pickup within all 50 U.S. States. The company will come with a tow truck to where your vehicle is at your convenience. It can be towed anytime during the week that you have time, usually within the week and some organizations can do rush pickup within a day or two. You do not have to pay anything for them to come and take it. If your vehicle is worth less than $500 they'll give you a receipt quickly. If it is worth more, it will take longer to get your receipt. Once you have the receipt detailing your gift of a car donation, hold it until tax time to be itemized. You most likely have a general idea of what your automobile is worth. Kelley Blue Book will also aid you in assessing the value of your gift.

Depending on the organization, up to 100% of all money made from your car donation will go to that charity. How many times have you given a handout to a bell-ringer or put a contribution into a jar and felt a little guilty? Have you wished it could be more? There may never be the "perfect time" to pull out $500 or more to give to a charity organization you believe in. Donating your automobile gives you that perfect time and the relief of not having to do anything more than make a call.

About the Author:

Timothy Rea makes getting that old junker off your hands fast and easy. Donate your car for a charitable, humane cause by simply visiting his site at: http://www.cardonations-info.com

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Are you planning to buy a new car? What do you intend to do with your old car? How about donating your car to a charitable institution?

For some years now, car donation in the United States and other developed countries is becoming more popular. People are starting to realize the value and nobility of the good deed to donate a car for the benefit of a great number of people.

Usually, old cars are sold to junk shops or are sold as second-hand cars. This way, the owner is able to generate a significant amount of money from the initiative. Some owners even give the old car to a relative or a family member who is yet to avail or buy a car of his or her own. But now, as mentioned, there is an option for car donation to a charitable institution.

There are several compelling reasons why car owners should do car donation. Of course, the top reason is humanitarian.

It feels great to help out other people who are in need. And there is no better reason to help others other than donating and giving funds, money and alms to charitable centers, which in turn, provide services and goods to the needy people.

If you aim to do good deeds, perhaps, car donation to a charity would be best. It is naturally not a very popular practice, but it surely is gaining a significant traction these days.

Car donation to a charity qualifies the donor to a significant and attractive tax break for the following year. If you are donating your old car to such an institution, it would be imperative if you would choose a charity that is an organization registered in 501(c)3. This would automatically provide you qualification for a tax shelter or break in return for the car donation you just did.

These days, you know how hefty taxes are. Wouldn't it be nice to earn good discounts?

If the car is too old and is qualifying for a junk shop, donating it to the charity would way be better. That is because you are basically giving what to you is junk but what other people can consider and treat like gold.

Charitable institutions accepting old car donations do not have preferences for such car donation. That means, any condition and appearance of cars donated to them, they likely and fondly receive. Do not expect to get any amount of payment or compensation for the car. Remember, you are donating a car, not selling it.

Some charitable institutions also provide many incentives for car donation. For example, some companies give alms to charities in the form of discounts to purchases of their products and services. In turn, the charities use such provisions, with consent of course, to reward and lure car donors. That way, the volume of car donations can significantly be bolstered.

There is much recognition accorded to old car donors. While it is true that people who donate should not expect anything in return, not even publicity for the good deed, most charitable institutions make it a point to advertise and make public lists of donors. This is their simple way of thanking generous people.

About the Author:

Alex Baumm. If you want other people to draw inspiration and queue from your good example, surely, Car Donation is for you. Learn how to Buy a New Car at our forums.

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The Melwood Car Donation program is designed to assist Melwood in its work with the disabled. Melwood, located in Upper Marlboro, Maryland, has spent the last four decades working to improve the lives of developmentally disabled people in the Washington DC, Maryland, and Virginia regions, and is devoted to helping the disabled find a functioning place in their communities.

Developmental disabilities are those which prevent children from being able to participate in their educational and social experiences in the same way as their non-disabled peers, and Melwood realizes that disabled children, when given a different sort of training, can become contributing members of society. Melwood has established the Melwood car donation program as a way to fund their various undertakings on behalf of the disabled.

100% of the proceeds from the Melwood car donation program are earmarked for the financing of projects to aid the developmentally disabled; these projects range from educational to recreational, to research, to finding employment opportunities. Everything Melwood does is aimed at letting the disabled realize their potential instead of dwelling on their shortcomings.

How To Make A Melwood Car Donation
Melwood has gone out of its way to make the Melwood car donation process as user friendly it can. You can begin your Melwood car donation either by calling their toll-free number at 1-877-MELWOOD to be walked through the process one step at a time, or you can visit the Melwood car donation website at:

http://www.melwood.com/Donatecar/Index.htm.

The Melwood car donation website contains all the online forms you’ll need to accomplish most of the process without leaving your computer. Even better, once all the details have been arranged, Melwood will take care of having it picked up.

How your Donation Will Benefit You
Your Melwood car donation will not only be a tremendous gift to the developmentally disabled; it will benefit you in the form of a tax deduction. Melwood will sell your car to help fund its work, and you will be able to write off the full amount of the sale on your next tax return. As long as you itemize your deductions, you can take a sizeable one for your Melwood car donation.

Since the Melwood car donation program began, over 150,000 vehicles have been donated to assist Melwood in assisting the developmentally disabled. The amount of good that has done is immeasurable, and you can keep the traditions going by adding your old car to the list!

You can also find more info on Car Donation In Portland and Car Donation Programs. 1cardonationservices.com is a comprehensive resource to know about Car Donation.

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Donating vehicles to charity seems to benefit everyone involved. If you are the donor, you get a chance to dispose of your old car, do some good, and get a tax deduction in the process. If you used an agent, he would also make some money out of the sale of your car. Of course, the main benefactor is the charity. However, how much do they really benefit from car donations?

According to studies, charities usually receive as little as five percent or less of the reported value of a donated vehicle. Usually, this happens because of other deductions from the sale of the car used to pay for advertising, towing, improving the condition of the car and processing documents. Some charities also agree to take a flat fee for a donated vehicle no matter what its market value is.

If you are considering donating vehicles to charity, be careful in employing car donation agents. Many are out to assist you in donating vehicles to charity for the purpose of profit. Some devise ways on how to resell the donated car for much more after selling them at auctions for a meager amount.

What you can do is search for charities that accept vehicle donations without using the services of intermediaries. These charities will process the necessary paperwork for you. However, you should still practice caution when donating vehicles to charity directly. Many companies disguise themselves as charities soliciting car donations and eventually selling the donated cars and keeping the profits.

The prevalence of such frauds in car donation programs gave rise to new laws concerning donating vehicles to charity. The tax deduction that a donor will receive is limited to the gross amount that the charity received. Charities that sell donated cars should provide donors with a written notice containing the gross sale amount of the donated car if it is valued at $500 or higher. On the other hand, charities that use donated vehicles in their operations should provide the donor with a written guarantee of how the charity intends to use the car donation and for how long.

When donating vehicles to charity, you should always check that the organization is registered and legitimate. To ensure that your donation will truly benefit the charity, your best option is to donate your car to an organization that can make full use of it in their operations. Look for charities in your local area or ask them for help in locating charities that may have a need for an old car for transportation, deliveries and errands.

About the Author
Read More Information On the writer Visit : http://www.dontan.com/

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Have you ever wondered who you might be helping if you chose to donate a car to charity? The possibilities are almost endless and the gift of a car is an incredible one for helping give people a hand up instead of a hand out.

When you think about it, in most major areas a car is vital for everything. People without decent cars cannot get to work, the grocery store, school, doctors' appointments and so on. Considering this, it's vital for just about everyone to have a vehicle to ensure their lives.

So, who could you be helping if you choose to help by donating cars to charity?

* A homeless person. It's possible that if you choose to help others by donating a car to charity that your donation would go to help a homeless person rebuild their life. Since transportation is often one of the most vital and expensive links involved in independence, the gift could go a long way in helping.

* A single mother. When it comes to buying a new car, few single mothers can afford one. Since everything that involves the children and caring for them will require transportation, a gift to charity could really help here. Donating a car to charity organizations that assist single parent families can result in a mom making sure there's food on the table and she can be available to pick up kids after school. It could mean that mother can get a job. Or, it could mean she has the freedom to go to the store or take the kids to the doctors.

* A struggling family. Donating cars to charity can even result in helping working families make ends meet. In a society that often requires two incomes to survive, two cars are almost a necessity. But, even those two are needed, it can be very hard for a family to buy and maintain two cars. When you donate a car to charity, you could really help make a difference for a family that wants to remain independent.

When you make the decision to donate a car to charity you never can tell who or how many people your gift could really help. A car is such a vital link for independence and survival in today's society, that a donation of a car to charity would mean the difference between getting by or getting ahead.

The best things about donating a car to charity are:

* It's a real hand up instead of a handout. Donating a car to charity gives someone a means to an end, but it's not the end itself.

* A sense of truly helping. Donating a car to charity is much more than just writing a check. A car is a tool a person can use to ensure a better life.

* Tax deductible. When you choose to donate a car to charity, you can see a real benefit on your taxes.

Choosing to donate a car to charity can open doors for a whole host of people. Helping a person help themselves, this kind of donation is unlike any other.

About the Author
For more information on the beneficiaries of car donations, visit http://www.usedcartech.com

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In a time when transportation is vital for virtually everyone to go about the daily business of living, more and more charities are looking for car donations to help them give others a hand up. And while it's not likely the biggest motivating factor behind why those who donate do, the gesture typically comes with a big tax write off at the end of the year. For those who need a tax break and can afford to donate a car, the effort can pay off in a number of ways.

Nonprofit agencies of all kinds accept car donations for a variety of different reasons. Some agencies will even accept boats, trailers and other vehicles, as well, giving those who donate a tax-deductible write off slip in return.

Agencies that solicit used car donations tend to do so for the following reasons:

* To help individuals. Agencies that work to get homeless people or those simply down on their luck back on their feet will sometime accept car donations to assist these people in gaining employment and independence. Car payments can be very high and can stand as a barrier between a person and the road to self-reliance.

* Single parents. For the above reasons, used car donations can be real life savers for single parents trying to make ends meet while paying all of the expenses that go along with child rearing.

* Fleet creation. Some agencies need multiple vehicles to help their operations run more smoothly. Car donations and even truck donations are ideal for assisting them in doing so while helping them avoid the price of buying new.

* Auction. Some agencies that accept car donations do so to sell the vehicles for pure profit with the money going back into the nonprofit's coffers to further its charitable mission. The donation even of a clunker car can result in some big financial rewards for the nonprofit and the people it serves.

Before making a used car or even a new car donation to a nonprofit agency, it's important to do the following things to ensure a proper tax credit for the gesture:

* Know the real value of the car donation before you give it away. Get a written appraisal, if possible, so you can prove the worth.

* Make sure the nonprofit is a reputable agency that has proper federal documentation for tax write offs. Generally, you will want to see proof of 501(c)3 status before you make a car donation. Some big name agencies are not a concern, but with small ones, proof of status is important to protect you.

* Be certain of the agency and your honest desire to make a car donation before you sign the title over. Also, make sure the agency knows the value and gives you the proper forms to claim the deduction.

Used and new car donations can help nonprofit agencies and the people they serve in a number of ways. Just make sure your bases are covered before you make a car donation and you should find the resulting tax deduction is a nice "thank you."

About the Author
For more information about car donations as a tax benefit, visit http://www.charitycarsonline.com

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Donating a car to charity can seem like the easy part of the equation. Choosing a charity to donate to on the other hand isn't always so simple. Two popular choices for car donations are the American Cancer Society and Father Joe's Villages. You know that both do great work in the community but suppose they are both your favorite picks for their car donation programs. You only have one car. How do you decide which is best?

Both the American Cancer Society and Father Joe's Villages are worthy recipients of donations. In fact, both organizations would willingly tell a benefactor that either charity will make good use of any donated auto. A person who decides to donate to either charity should make sure, however, that the donation is going to be used for the designated organization. The best way to do this is to deal directly with either the American Cancer Society or Father Joe's Villages. Using a third party for charitable car donations can mean that the charity will not receive the full value of the contribution.

Some charities may claim that every penny received goes to the benevolent works of the foundation. But this is not possible as all charities have running costs which they need to fund. The American Cancer Society and Father Joe's Villages are registered charities whose financial statements can be investigated through the Attorney General of any state. If you want to know exactly what percentage of their donated funds these charities use for expenses contact either the charities direct or your state Attorney General.

Given that the American Cancer Society and Father Joe's Villages are both reputable charities that abide by federal rules for charitable car donations, are there any factors that make one of the charities a better place for your auto donation? The main difference between the programs of the American Cancer Society and Father Joe's Villages is that Father Joe's allows you to designate the charitable function to which the proceeds from your donation will be given.

As mentioned in the beginning, the decision to donate your car to charity can be the easiest facet of the whole arrangement. You only have one car so you have to make a choice. The most important thing is that you feel comfortable with your choice. In the final analysis it may be worth your while to visit both charities and get a first hand view on which is the best fit for you. That way you'll be able to see for yourself the work they do and which resonates more strongly with you.

About the Author
J Brennan is passionate about cars and supporting worthwhile charities. Car donations combines his two favorite things and he is eager to share his knowledge about both. For comprehensive information on how to go about donating your car to charity visit: http://www.usedcardonationtips.com

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How many cars do you have in the driveway? One, two, maybe more? Do you use them all? Are they all really necessary? While it may seem that you need each car, it may be that having more than one is actually costing you more than you think.

Consider how much the insurance is costing you on that second car. Couldn't that money be better spent elsewhere? Do you have children? Will they be going to college? The money that you are spending on insurance could be saved for a college education. College isn't getting any cheaper; in fact, the prices are climbing more every year.

Here is a crazy idea, why not donate a car to a charitable organization?

Are you too busy to try to sell the car?
Is there any use for the old car?
There are organizations that would be willing to tow it away for you for the donation.

What are the incentives to donating a car?

Helping people in need (obviously).
An excellent chance that you could write off the resale value of the car as a tax deduction.
The organization would more than likely be very willing to let you know what price they received for the car when they sold it.
You in turn, would supply this information to the person who does your taxes so it could be put in your tax return.
In other words, this helps you as well as the organization.

A car donation works basically the same as any other donation with the exception that the organization will sell the car and then use the money that they receive for the car for something good. The organizations can be for anything. They can be cancer organizations, homeless organizations, Make a Wish type organizations, etc.

When you donate the car it is considered a donation for what the current Kelley Blue Book value is. The mileage is also considered in the value of the car. When you donate the car the organization will give you a receipt for the car with the current Blue Book value on the receipt. This helps in showing that the donation was a legitimate donation especially if the name and address of the organization is on the receipt. Another situation where a couple of bad apples have spoiled the whole bunch, some people have made up deductions so it is always a good idea to have proof.

If the person would sell the car and get more than the Blue Book value for the car they would have to report that as a gain and then report that on their taxes and actually have to pay taxes on that gain. But, if the person would get less than the Blue Book value the person would not be able to report that as a loss unless of course they were in the business of selling cars. In other words, a car salesman could report that as a loss but a grocery store owner could not.

About the Author
Gregg Hall is an author living in Navarre Florida. Find more about this as well as other Auto Parts and Accessories at http://www.shop4autoparts.com

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Selling an old boat can turn out to be a very taxing affair. Placing repeated ads, answering phone calls, entertaining prospective buyers and haggling over the price with numerous buyers can take its toll on your comfort and time. A better idea would be to donate your boat to a charitable organization. An act of philanthropic spirit, a hassle-free pick up and a substantial tax deduction are some of the benefits that you will accrue as a result of this donation.

Donate your boat to empower somebody with the courage to dream. The charity you will donate your boat to will use the funds accumulated through your donation for their activities to alleviate misery and deprivation. Choose your favorite cause and the charity, you feel, is doing commendable and vital work in that field. Your charity boat donation will help these organizations filter the much-needed funds into their emancipation programs. So, your donation today could ensure a better tomorrow for someone.

It has a substantial benefit for you, also. While you are helping fulfill somebody’s dream; you have the added advantage of receiving a tax deduction for your boat donation. All that you have to do is to get in touch with a non-profit charity organization or an agent who will help you choose the charitable organization and also make arrangements for the donation, the free towing of the boat, donation forms and the required documentation.

They will also arrange that you receive a formal letter from the charity stating that you have made the donation. Some organizations might also provide you with a second receipt stating the exact amount for which they sell the boat, later on. This makes your task easier when you file your tax returns. You should refer to your tax advisor for particular details pertaining to your specific case. To donate the boat, you must have the title or the ownership papers of the boat.

Charity Donations provides detailed information on Charity Boat Donations, Charity Car Donations, Charity Clothing Donations, Charity Computer Donations and more. Charity Donations is affiliated with Catholic Charity Car Donations.

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Car donations can help a number of people acquire the basic amenities of life such as food, clothing, and shelter. It can help the distressed to a large extent by providing assistance and relief. The most important thing here is that there are no hassles involved in the donation of a car. Cars that are not run in years are also accepted after evaluating their value. The title to the car is extremely important when donating. But if there is no title, the organization can still make necessary arrangements. The Motor Vehicle Department of the donor's state can also help in this regard. There should be no lien on the car.

The donor does not have to drive the car down to the charity organization. This is taken care off by the organization itself. The organization has the car towed away by a reliable, bonded, and licensed towing company free of cost. The towing company contacts the donor within three to four working days at the latest and accordingly the time and place which suits both the parties concerned is decided and the car is towed.

The donor should ensure that there are no hidden costs involved. An online application form has to be filled by the donor to contact the organization to schedule a pick up. Donations should be made to an IRS registered on profit making organization. An added advantage of donating a car is tax benefit. If the car is accepted by the charity organization after looking at its condition, a tax-deductible receipt is issued. Donation is deductible under income tax. The amount of deduction may be the value of the car up to $500 or the amount for which the car is sold, if above $500.

While donating, the car should be cleaned and it should be free of any personal belongings. The keys should be left on the dashboard incase the donor is not at home at the time of pick up. Any problem with the car until it has been picked up by the organization is the responsibility of the donor. All the previous fines and storage charges are the donor's liability. After the car is towed, it is the responsibility of the organization.

Car Donations provides detailed information on Car Donations, Used Car Donations, Charity Car Donations, Car Donation Tax Deduction and more. Car Donations is affiliated with Donate a Used Vehicle.

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You want to donate your car and take advantage of the car to donate for tax deduction, but it seems really confusing trying to figure out this deduction. Don't worry you aren't alone. The two main things you need to know when it comes to donating a car for tax deduction is that the actual amount depends on the person who is donating and their claim as to the value of the car, but also on the way the charity puts the car to use.

There is one other thing you should know about the car to donate for tax deduction. If the car happens to be worth more than $500 and the charity decides to sell the car that may affect the limit of the person applying for the car to donate for tax reduction and the limit to the access on the gross profits from the charities sale.

Wanting to get the most out of the car to donate for tax deduction requires some knowledge on the matter. There are a few points that may be significant in how well you will benefit.

The first thing to know is that you need to be able to verify the eligibility of the organization that you are donating to. A library or Publication 78, which is an online resource, can help you pinpoint the charities that qualify to be used to take advantage of the car to donate for tax rebates. This will save you time and effort in the long run.

You also must remember that when it comes to claiming the car to donate for tax deduction you must itemize your deduction. You can no longer just stick to the standard deduction. To be able to fully maximize your advantages you must itemize.

A good place to look is a used-car buying guide; these are invaluable at determining the fair market value of the car in question. Being able to correctly determine this will help you maximize the amount of your car to donate for the purposes of tax reduction. Once you have correctly estimated the fair market value, deduct it.

Unfortunately this is all you can, not the full value. When applying for the car to donate for tax deduction you must also file a Charitable Contribution Deduction. As well as this you must be immaculate in keeping records of all your receipts and forms. This will help you to achieve the most from the car to donate for tax reduction.

Check out http://www.easy-tax-deductions.com/ for more articles on child care tax deduction and donations tax deductions.

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It is time you bought a new car. What should you do with the old one; should you try to sell it? You may be in for some hassle if and when you decide to do that. If you can’t trade in your car to put towards the new car, what should you do? You can give charity car donation to help an organization that truly needs it.

When you want to sell a used car, you have to pay for an ad in some sort of publication in order to advertise it. When you give to charity car donation, you simply pick up the phone and call the charity of your choice and they will come right to your door to pick up charity car donation.

Many people do not realize that charity car donation is an option they have when they want to get rid of an old car. You will be able to use your donation as a tax write off as long as you get a receipt confirming you have indeed given to charity car donation. There are many organizations that will be happy to take your car off of your hands.

When you give charity car donation, it will give you a good feeling about giving to others who are in need. Many charities will fix the car and give it to a person or family that has no way to get to work school or run errands. Sometimes charity car donation will fix the car and sell it themselves and use the money to put towards the needs of the people they are serving.

Charity car donation can be researched on the internet. You can find many charitable organizations in your immediate area that will be glad to take your old, used car off of your hands absolutely free. All you need to provide is the title for charity car donation and the organization picking up the car will do the rest. You can take pride in knowing that it was more important for you to help others than to make a profit on your old car.

For more information about Charity Car Donation, feel free to visit us at: http://www.car-donation-land.info/Charity-Car-Donation.html

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A great way to support your favorite charity is through donating a used vehicle. The charity will most definitely thank you, and the government will, too. Your generosity will likely be recognized with a special tax deduction, but certain requirements must be met before you can receive this type of tax break.

Unfortunately, the policies regarding vehicle donations are not as clear-cut as those for other types of charitable contributions. The level of tax relief you can receive depends not only on the total claimed value of your donation, but also on how the charity will use the vehicle. That's why there may be a delay, and you may not know your full tax deduction amount at the time that you make the donation.

Changes were made since 2005 to the statutes for tax deductions applied to vehicles donated to charitable trusts. If the declared value of the donated vehicle exceeds $500, and the vehicle is placed for sale by the charitable trust, taxpayers are limited to claiming the gross profits from the transaction.

If this type of charitable donation appeals to you, you'll need to keep the following points in mind:

Claim Fair Market Value

When filing your tax return, be sure to deduct the fair market value of the vehicle. This amount will take into consideration the condition of the donated vehicle. Claiming the full value of the car is not acceptable.

Itemized Deductions List

You must itemize your deductions in order to take full advantage of tax relief available to you. If you are claiming standard education, you will not benefit from this clause.

Charity Eligibility

In order for you to receive the benefit, the charitable trust must qualify with the tax department. Check a copy of Publication 78, available online and at public libraries, for a list of eligible charities.

Estimating Vehicle's Fair Market Value

There are various factors to consider when determining the value of your car. Refer to a recent used car guide for precise instructions to evaluate your vehicle's value. You may need to make adjustments depending on accessories, mileage and other indicators of its general condition.

Filing Your Charitable Contribution Deduction

Be sure to keep good records when claiming a tax deduction for your vehicle donation. Store all receipts and forms relating to the car donation, and a copy of its fair market value, in a secure place. And keep it for several years.

If you are a taxpayer in the USA and you've donated a vehicle to charity, contact the IRS at 1-800-829-1040 to find out if your previous contribution is tax deductible. If you think that someone sought your contribution for deceitful purposes, speak with an appropriate state charity watchdog at the state Attorney General's office.

Donating a spare or unneeded vehicle is a very generous way to benefit your favorite registered charity. The charitable organization will thank you, and eventually so will the tax officer.

Michael Trusthold is an expert in the automotive industry, and contributes to several popular car web sites, providing tips on used cars and especially how to buy a used car cheaply and safely.

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Hundreds of charities have begun to adopt car donation programs as a way to raise funds or to provide themselves with no-cost vehicles to help operate their programs. But rather than managing the car donation programs themselves, they will often turn to fundraising organizations to actually handle the donation and auctioning of the vehicles. And that policy can mean a problem for you.

If you run an Internet search on car donation programs, you will get hundreds of hits from fundraisers who claim that they will let you choose from among a group of charities to which the proceeds of your car’s sale, of not the car itself, will go. And they will give you the paperwork you need to claim your car donation as a charitable deduction on your IRS return.

Taking Advice From The IRS

But the IRS itself, in recent years, has become alarmed at the proliferation of car donation programs run by fundraisers which end up keeping the bulk of the proceeds they receive for donated cars. The IRS recommends that it you are considering any of the car donation programs, you contact the people running it and get a clear answer as to whether they are charity officials, or private group acting for the charity.

If you find that they are a private group running the car donation programs of several charities, find out exactly what they plan to do with the car you donate. Will the car be repaired and given to the charity to help in its work? Or do the fundraisers intend to auction the car off and if so, how much of the proceeds will go to the fundraisers, and how much to the charity?

Car donation programs which cannot, or will not, give you clear answers to these questions are not those on which you can depend to see that your ca, or the money it brings gets, to the charity of your choosing. And if the charity does not directly receive the car or its value, you do not have the right to claim the value of the car as a deduction.

Legitimate car donation programs greatly simplify the process of connecting you with a charity which will benefit from your gift. But it’s your responsibility to research the various car donation programs in you area and ensure that as much a possible of your car’s value will be channeled to the charity, and that the charity itself is one recognized by the IRS. Otherwise, your well-intended car donation may turn into a big problem at tax time, when you attempt to take an unwarranted deduction!

You can also find more info on Melwood Car Donation and Used Car Donation. 1cardonationservices.com is a comprehensive resource to know about Car Donation.

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