Fund Raising Ideas for Groups in the New Millennium!
How to Donate Your Car to Charity and Get Tax Deduction
Donating your used car to charity is a win-win situation; the charity gets your gift and you get tax deduction. Below are some simple steps to make a car donation.
- Understand the rules. A good place to read the government
rule on car donation is IRS Publication 4303, A Donor's Guide to Car Donations
(available on the IRS's website at www.irs.gov). This guide outlines some
important rules regarding car donation. For example, one important rule states
that car donation must be made to qualified organizations in order to be tax
deductible.
- Determine the value of your used car. Although the blue
book might help you determine the value of your car, you should read IRS
Publication 561, Determining the Value of Donated Property (available on the
IRS's website), to see what your car really worth.
- Find a charity to donate your vehicle. If you are
associated with any charity or non-profit organizations, that organization
might be your choice for donating your car. Otherwise, check the Yellow Book or
search on the Internet to find an organization to which you feel like donating
your car. After you have identified a candidate, you should review IRS
Publication 78, which is a list of organizations eligible to receive
tax-deductible charitable contributions. This document is also available on the
IRS's website and it's searchable. Make sure the candidate charity is eligible.
Otherwise, you might not get your tax deduction!
- Make your donation. After you have made the donation, make sure to ask for a written acknowledgement from the charity. You will need to attach this acknowledgement to your tax return in order to get your tax deduction.
Article written by John Lee
John Lee is a freelance Internet
writer. He has written articles for websites such as
Vehicle Donation 101, (http://www.vehicledonation101.com)
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