Most people look forward to getting their tax return, but one of the downsides to filing taxes is that you may find yourself owing the taxman come April 15. What do you do when you realize that you not only owe money, but you owe more than you can pay at the time?
The answer is: charitable deductions.
Did you know that charitable contributions are deductible from your taxes? Most people only think of donations as being cash, and giving away more cash that you don't have won't help you in this case. However, there is another option available - donate your car. Do you have an old car sitting around (even if it doesn't run) that you're not using or are having a hard time selling? If so, you're in luck! Many charities accept car donations, regardless of condition, and this contribution can be deducted from your taxes. There are a few steps you need to take in order to claim a deduction by way of car or other vehicle donation:
First thing you need to do is find out how much value you can get out of the car or other vehicle you plan to donate. Even old cars in poor condition are often accepted for donation, as they can still be sold for parts or scrap. There are sites that specialize in this kind of information, many of them free.
Find a charity or non-profit organization you believe in. It is one thing to donate a car simply for the tax relief, but find a charity that you feel strongly about to donate your car to. You won't only be helping yourself, you will be helping others that you care about.
Thirdly, make your donation - making sure that it is tax deductible. In most cases this will be the full value of the vehicle (actual market value, not Blue Book), but state laws may vary for state income tax purposes. If you have any question about this, you should see your tax advisor.
To prevent over-estimate, the IRS requires people who donate their car to produce a document from the charitable organization specifying the resale price of the car after the car is sold off. Automobiles with retail values up to $500 are exempt from this rule. In any case, make sure you get a receipt detailing your car donation. Requesting a receipt may also be necessary if you have your taxes prepared by a paid preparer.
Donating a car may sound like a big undertaking, but it's not. You can accomplish three things at once - getting rid of an old car that is taking up valuable space, helping your favorite charity, and getting a deduction on your income taxes. If you have an old car and want to reduce your tax payment, donating a car might be right for you!
For more information on car donation, please visit car donation for charity and tax relief.
Mercedes Benz s500 rentals Salem ..You're at your office, or home, and the doorbell rings... Read More
"Deducting Meals and Entertainment"O.K. You've been working really hard on... Read More
Each year, the IRS lists various scams taxpayers get caught... Read More
One can never underestimate the enthusiasm that politicians have for... Read More
As tax time approaches, many home-based business owners begin completing... Read More
The knock on the door from a Tax Inspector is... Read More
Tilting the Tax Laws in Your Favor.In order to accelerate... Read More
Does this scene sound familiar? It's April 7. You haven't... Read More
All tax authorities to e-commerce transactions should investigate the record... Read More
It may not be high on the list of wedding... Read More
If you have recently started an Internet or home business,... Read More
Managing a business small, medium or big requires you to... Read More
Many taxpayers are confused about how long they should keep... Read More
On June 3, 2005, the IRS released guidance on charitable... Read More
Whether helping the kids with a down payment on their... Read More
The Sarbanes-Oxley Act, also called the Public Company Accounting Reform... Read More
We all love to criticize the IRS, don't we? And... Read More
Running a home based business reaps many wonderful tax deductions... Read More
Many small businesses complain when confronted with the expense of... Read More
Import duties continue to be significant elements in the cost... Read More
Self-assessment relies on taxpayers voluntarily meeting their tax obligations. This... Read More
Once a year Canadian taxpayers are required, by law, to... Read More
At the present time a company incorporated in the Isle... Read More
It's a moment every person dreads. You pick up the... Read More
QUESTION: I have been contacted by my local city... Read More
Dowagiac cheap limo service ..Statistics for IndividualsUnfortunately, the IRS increased its rate of auditing... Read More
The IRS has obtained civil injunctions against more than 100... Read More
Do you realize that some tax forms ask you to... Read More
Donating your used car to charity is a win-win situation;... Read More
If your identity is stolen, your finances can quickly become... Read More
NOTE: This is the first in a series of 5... Read More
It may not be high on the list of wedding... Read More
Hit a big one? With more and more gambling establishments,... Read More
Millions of people file tax return extensions every year. The... Read More
Over 50% of marriages end in divorce in the United... Read More
With gas prices at an all time high before Hurricane... Read More
Often people fall on hard times and stop paying on... Read More
While there are many equally valid reasons to incorporate, saving... Read More
Estate taxes. It's not enough to simply know they exist,... Read More
The Internal Revenue Service has certified the 2006 Toyota Highlander... Read More
The Sarbanes-Oxley Act, also called the Public Company Accounting Reform... Read More
Someone once said, 'the best way to calculate your taxes... Read More
The electronic transaction ordinance defines the certificated copies in which... Read More
All states also have their own tax system. Typically there... Read More
As tax time approaches, many home-based business owners begin completing... Read More
"Deducting Meals and Entertainment"O.K. You've been working really hard on... Read More
According to the IRS, taxpayers underpay their taxes by some... Read More
It's that time again, the April 15 tax deadline is... Read More
April 15 - The most dreaded day of the year... Read More
As a small business owner or self-employed person, one of... Read More
Tax |