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.
1. 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.
2. 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.
3. 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!
4. 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.
John Lee is a freelance Internet writer. He has written articles for websites such as car donation helper, (car donation helper)
Airbnb cleaning service Arlington Heights ..April 15th looms in front of most people every year... Read More
Each year, the IRS lists various scams taxpayers get caught... Read More
Most people look forward to getting their tax return, but... Read More
Knock-Knock-KnockWho's there?The IRS!The next quarterly payment of estimated income tax... Read More
If you are a Small Business Owner or Self-Employed Person,... Read More
The Sarbanes-Oxley Act, also called the Public Company Accounting Reform... Read More
Own residential rental properties? This article discusses how income from... Read More
QUESTION: I have been contacted by my local city... Read More
Many taxpayers are confused about how long they should keep... Read More
Once a year Canadian taxpayers are required, by law, to... Read More
While accountants are reaching for aspirin, millions of Americans are... Read More
How Home-Based Businesses Can Avoid Giving Uncle Sam... Read More
With the massive losses caused by Katrina, the economy of... Read More
Deducting Your Auto ExpensesAuto deductions are a very complex topic.... Read More
Millions of people file tax return extensions every year. The... Read More
Why a Corporation Helps Save You TaxesThe Tax Rates (Notice... Read More
As a sole proprietor, it's wise to familiarize yourself with... Read More
Misconceptions, misinterpretations and just plain "untruths" are floating about income... Read More
Should I take wages or dividends from my privately owned... Read More
How about a Tax Tip?As we all know Taxes are... Read More
"Settle for Pennies on the Dollar! IRS debts settled for... Read More
On June 3, 2005, the IRS released guidance on charitable... Read More
Beware of advertisements that claim to settle tax debts for... Read More
Taxpayers have two easy and convenient options for getting copies... Read More
It's a major fear for most Americans: A notice from... Read More
reliable maid service Winnetka ..Emerging Legal issues of Tax compliance of e-business Self-assessment system... Read More
Q: I was contacted by the city tax collector to... Read More
Just image, you are a small manufacturing company, business has... Read More
In the rush to get tax returns prepared and filed... Read More
Statistics for IndividualsUnfortunately, the IRS increased its rate of auditing... Read More
Background issues of access to recordsTo assess the records at... Read More
As tax time approaches, many home-based business owners begin completing... Read More
OverviewIn the Pre-Budget Report of December 2003 the Chancellor Gordon... Read More
An early distribution from an Individual Retirement Arrangement (IRA) or... Read More
Does your incorporated business pay alternative minimum tax ["AMT]? If... Read More
Deduction of Refinance PointsAny points that you pay in the... Read More
The knock on the door from a Tax Inspector is... Read More
As a small business owner, it's wise to familiarize yourself... Read More
Own residential rental properties? This article discusses how income from... Read More
Let's assume that you would like to begin saving for... Read More
Someone once said, 'the best way to calculate your taxes... Read More
When buying a business, how the "purchase price" is made... Read More
Does this scene sound familiar? It's April 7. You haven't... Read More
Do you realize that some tax forms ask you to... Read More
Knock-Knock-KnockWho's there?The IRS!The next quarterly payment of estimated income tax... Read More
"What we've got here is a failure to communicate." ... Read More
Newlyweds and the recently divorced should make sure that names... Read More
Tilting the Tax Laws in Your Favor.In order to accelerate... Read More
For many business owners the answer to this quandary is... Read More
As teachers and students head back to school following a... Read More
Tax |