If you donate a vehicle to charity, you are not only fulfilling your responsibility towards your country and its people but you also get great benefits in return. There are millions out there who spend their lives in extreme poverty, people who cannot even afford two square meals a day. There are kids who die of diseases in slums, diseases which they would never have contracted if they lived in better and healthy surroundings. You can help all those unfortunate people out there if you donate a vehicle.
These vehicles you donate are auctioned and the funds are used to provide assistance to impoverished people. Charitable institutes may also retain your car to use it in the course of their work. If you wish to donate a vehicle to charity, you need to be fully prepared.
Things You Ought to Know:
The charity you are donating to should be a state recognized charity. You can find a list of all charities that are qualified to receive tax deductive donations at the official website of the Internal Revenue Services or a public library.
You are entitled to tax deductions equal to the fair market value of your car. You can calculate the fair market value of your car from Kelley’s Blue Book.
In case your car‘s value is greater than five hundred dollars, you will need to fill a form 8283. If your car’s value is greater than five thousand dollars, you will need a third party to certify its value. You will also need receipt of the donation from the charity.
Make sure you preserve all documents regarding your donation as you will require them while filing your income tax returns.
Things You Will Require:
A computer with an Internet connection.
Form 1040 to submit for Federal tax return
Title to the car you are donating
Itemized deduction tax form from IRS
Kelley’s Blue Book
Ensure that the company you have chosen is reputable and honest.
Don’t pay for towing; most donation companies will arrange to pick up your vehicle for free.
Get a receipt of your donation.
Transfer the titles of your car to the charity.
Do your homework. Be fully prepared before you donate a vehicle.
Written by CharityDispatch
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tags: Donate, Overview, Tips, Vehicle