More than ever, the process for giving your car to a charity is very simple. If you’re just in it for the good feeling, the tax deduction is just a bonus anyway. However, if the charity chooses to keep the car for deliveries, drop-offs, or other essential duties, then you can deduct the whole value of the car. If you’ve been on the fence about donating your car, get off the fence and give a deserving charity a call. So as you’re driving your car to the charity, remember these three items: the title, the keys, and the paperwork. Many also accept trucks, vans, RVs, boats, trailers, planes and motorcycles. The receipt is essential, especially in the case of an IRS or state audit. Of course, these car charities need your donations. Along with the good feeling that comes from having done something good, you might also qualify for a nice tax break. If you’re worried that everyone donates their cars, don’t worry.If you’ve thought about donating your auto to a car charity, don’t hesitate.
Car charities don’t just accept cars. Giving your car to charity will save you time, headaches, maybe even give you a tax deduction.
If you qualify, the tax deduction can also come in handy at the end of the year.
See it’s simple. Car charities say they can’t keep up with the request plant support netting for quality used cars. To qualify you must be able to itemize your deductions on your tax return. You have to wait until the charity sells your car. Some car charities can work around it, but many need the title in order to accept your donation.
Unfortunately, you can’t just take the Kelly Blue Book value for the car anymore. Make sure you get a receipt from the car charity. Check with your accountant to see if you qualify. Donating is easy. In this case, you can refer to the Kelly Blue Book for the fair market value of your car. The receipt will include three things: the car’s value, the charity’s name and donation date. If the car is $500 or less, you can deduct the whole thing, if you qualify. Then you can only deduct up to the amount of the sale. But, not everyone can deduct their donated car. You have to be able to itemize your deductions.
Figuring out how much you can deduct is easy. By donating your car, you help the car charity fund its programs.