Tax Deductions For Car Donations

Tax Deductions For Car Donations



Tax Deductions For Car Donations
Donating a​ vehicle can be a​ great way to​ give to​ your favorite charity .​
the​ government will recognize your generosity with a​ special tax deduction,​ but certain requirements apply in​ realizing these tax breaks .​

Policies regarding vehicle donations are not as​ straightforward as​ with other types of​ charitable contributions .​
the​ tax relief you​ can receive depends not only on​ the​ claimed value of​ your donation,​ but also on​ the​ way the​ charity uses the​ vehicle .​
For this reason,​ you​ may not know what your full tax deduction will be at​ the​ time that you​ make your donation .​
as​ of​ 2018,​ there have been changes to​ the​ statutes for tax deduction for vehicles donated to​ charitable trusts .​
If the​ stated value of​ the​ donated vehicle is​ more than $500,​ and if​ such vehicle is​ put up for sale by the​ charitable trust,​ then the​ taxpayer is​ limited to​ the​ gross profits from the​ transaction.
Taxpayers wishing to​ benefit from such a​ charitable donation need to​ keep the​ following points in​ mind:
Itemize Your Deductions
To take full advantage of​ the​ deductions available for your car donation,​ you​ need to​ itemize your deductions .​
Those who claim standard education are not able to​ benefit from this clause.
Estimate the​ Fair Market Value
Various factors must be considered in​ determining the​ value of​ your car .​
Refer to​ a​ used car guide for precise instructions to​ find your vehicle's value .​
Adjustments should be made depending on​ accessories,​ mileage and other indicators of​ its general condition.
Deduct the​ Fair Market Value
When making your claim,​ deduct the​ fair market value of​ the​ vehicle .​
This amount takes into consideration the​ condition of​ the​ donated vehicle .​
you​ may not claim the​ full value of​ the​ car.
Verify the​ Eligibility of​ the​ Organization
The charitable trust must qualify with the​ tax department in​ order for you​ to​ receive a​ tax benefit .​
a​ good place to​ find a​ complete list of​ recognized charities on​ with Publication 78,​ available online and in​ public libraries.

File the​ Charitable Contribution Deduction
When claiming a​ tax deduction for your vehicle donation,​ it​ is​ essential to​ keep good records .​
Be sure to​ keep and record all receipts and forms related to​ the​ car donation,​ and its fair market value .​
If you've donated a​ vehicle and want to​ know if​ your contribution is​ tax deductible,​ contact the​ IRS at​ 1-800-829-1040,​ or​ for TTY/TDD help,​ call 1-800-829-4059 .​
If you​ are concerned that contributions have been sought for deceitful purposes,​ contact the​ appropriate state charity official,​ located in​ the​ state Attorney General's office .​
If you​ have a​ spare vehicle,​ consider donating it​ to​ your favorite registered charity .​
the​ organization,​ and the​ taxman,​ will thank you.




Related Articles:



Related Topics:

Tax News - Tax Guide - Tax Tips - Tax Advice - Tax Videos - Tax Support - Tax Questions - Tax Answers - Tax eBooks - Tax Help



Powered by Blogger.