You are in: Home > Taxes

Car Donation Tax Deduction

20th July 2010
By EricLWeeks in Taxes
RSS Legal RSS    Views: N/A

You'll find that there exist altruistic establishments that assist the poor and disadvantaged. These are people who rely largely on donations and the resources of others to help them with their day-to-day living needs. They consent to receiving a multitude of contributions, including money, food, and, every so often, motor vehicle contributions.

The practice of donating automobiles - cars and trucks - to charitable groups is not the latest practice. But it really has only been lately, with the newly passed tax guidelines, that the laws governing car donation tax deductions became crystal clear. Therefore, if you have an older motor vehicle and are planning to invest in a replacement, you could contribute it to a charitable cause, avoid certain hassles, AND ... benefit from a car donation tax deduction.

Search out a charitable organization entitled to accept such contributions and, at the same time, bless you with a potentially sizable tax savings. Simply by giving your car or truck to charity, you can avail yourself of a tax write-off and furthermore help your charity's altruistic programs along the way. With a single act, you can do something great for the considerably less fortunate while gaining something both personally and financially rewarding in the process.

So, when choosing to gift a vehicle to a charity, you should make certain the entity in question is qualified to accept this type of donation. You, the giver, can only obtain a tax break by following the mandated procedure and honoring the necessary legal requirements. Donors can acquire the required standard forms from the IRS, forms that enable them to ascertain both the eligibility of the specific charity along with donor's tax break eligibility. In instances where a charitable organization is not entitled to accept contributions such as trucks and other vehicles, the donor, consequently, will be unable to claim the hoped-for tax deduction.

Anyone who hopes to avail himself of a car donation tax deduction must complete the necessay government paperwork and forms. There are aid organizations to guide the entire procedure from A to Z mainly by processing the actual car donations and providing legitimate tax deductible receipts.A hand-prepared acknowledgment from the charity must then be filed with the donor's tax returns to reflect the actual tax deductions. Even though the procedure is now officially completed, it is still strongly advised that you keep photos and all the required documents at the ready - JUST IN CASE concerns or difficulties arise at a later date.
This article is free for republishing
Bookmark and Share

Ask a Question about this Article

powered by Yedda